The Motley Fool

AMCIL share price higher on special dividend

Listed investment company AMCIL Limited (ASX: AMH) this morning released its half-yearly review for the last six months of 2018 alongside the declaration of a 2¢ per share fully franked interim dividend and a fully franked special dividend of 1.5¢ per share. AMCIL shares are trading 2% higher at $0.89 today.

The company cited the uncertainty regarding the future refundability of franking credits as a motivator for paying the special dividend.

AMCIL invests in 30 to 40 Australian equities companies of mixed size, employing a buy and hold strategy with a medium to longer term view.

AMCIL’s portfolio underperformed the market over the period, posting a -10.2% return compared to the ASX200’s -6.8%. This was nothing too far out of the ordinary after a dismal 2018 for Australian fund managers.

However, it should be noted that AMCIL’s performance looks far better over a longer time horizon. Over a ten-year period, AMCIL has posted a return of 11.8% compared to a benchmark of 10.6%. This return figure is net of costs and tax paid.

Profit for the half-year was $3.66 million, up 42.7% on the previous corresponding period. This was driven by a gain on the options portfolio of $0.9 million and exposure to the BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) buybacks.

Portfolio changes

Over the period, AMCIL picked up new positions in the following companies:

  • Sydney Airport Holding Pty Ltd (ASX: SYD)
  • Ramsay Health Care Limited (ASX: RHC)
  • Starpharma Holdings Limited (ASX: SPL)

Meanwhile, AMCIL disposed of positions in:

 

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended InvoCare Limited and Ramsay Health Care Limited. 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.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now