MENU

Why Geoff Wilson keeps buying WAM Leaders Ltd (ASX:WLE) shares

Geoff Wilson is the man behind the name of Wilson Asset Management (WAM), which manages several high-performing listed investment companies (LICs) like WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Microcap Limited (ASX: WMI).

Another of the LICs WAM is WAM Leaders Ltd (ASX: WLE). This LIC invests in companies in the S&P/ASX 200 Index.

Theoretically, it’s more difficult to generate market-beating returns with shares just from the ASX200 because you have less stocks to choose from than if you can pick any share on the ASX.

Since the half-yearly WAM city presentations finished, Geoff Wilson has been buying shares of WAM Leaders. Since the end of May he has bought around $286,500 worth of WAM Leaders shares.

The main reason he did this is because WAM Leaders was trading at a discount to its NTA before tax. At the end of April the share price was $1.12 and the NTA before tax was $1.18. The discount was despite the WAM Leaders portfolio delivering a return of 14% before fees over the past year, compared to the index’s 5.5% return.

WAM Leaders initially launched with a significant number of options, but the option period is over and now I think fees would be the only concern investors could have, considering its outperformance of the market.

It has steadily increased its dividend yield since listing and now has a grossed-up dividend yield of 6.3%.

Foolish takeaway

WAM Leaders looks like good value for its current performance, which also includes some of the portfolio being in cash. Although I prefer WAM Research to WAM Leaders, I think WAM Leaders would be a good option for passive investors.

Another share which could be an excellent dividend option is this top stock that just increased its dividend by more than 25%.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO and WAM Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!