Bki Investment Co Ltd (ASX: BKI) is one of Australia's largest listed investment companies (LICs) with a market capitalisation of nearly $1 billion. The LIC released its quarterly investment report earlier today and made a staunch defence of franking credits for its shareholders.
This LIC has a management expense ratio of 0.17%, which is one of the lowest in the industry.
It looks to invest for the long-term in profitable, high yielding and well managed companies. Bki aims to increase the dividend over the long-term and it has done this effectively.
Over the last 10 years Bki's total shareholder return has been an average of 8.3% per annum compared to the S&P/ASX 300 Accumulation Index average return of 5.2% per annum. This translates to a 3.1% average outperformance per annum over the past decade.
It owns shares of many of Australia's blue chips like National Australia Bank Ltd (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Wesfarmers Ltd (ASX: WES).
Foolish takeaway
Bki is currently trading with a trailing grossed-up dividend yield of 6.68%, which is quite good, and it has proven to be a very consistent dividend payer over the last 15 years. The share price is $1.56 compared to the pre-tax NTA of $1.54 and the post-tax NTA of $1.47. Bki has a reasonably good record but I wouldn't buy it just for the dividend, I'd want a stronger performance from the underlying portfolio.
