Wilson Asset Management (WAM) is famous amongst the listed investment company (LIC) circle for being one of the largest and most loved listed asset managers on the ASX. Started by Geoff Wilson in 1997, WAM now boasts six LICs in its stable and its Funds Under Management continues to grow at record rates. Therefore, it makes sense that when WAM releases its monthly investment updates, most of us Fools pause what we’re doing to have a read.
WAM Capital Limited (ASX: WAM)
WAM Capital is the ‘original’ WAM LIC, having been around since 1999. Since that time, WAM Capital has delivered a solid performance of 16.7% per annum and currently pays an 11% grossed-up dividend yield. According to WAM’s June update, WAM Capital’s investment portfolio increased by 0.7% in June and is sitting on a net tangible asset (NTA) value of $1.84 per share (a 20% premium to its current share price of $2.21).
WAM Capital made a significant move to cash this month, with its cash and fixed interest percentage rising from 19.7% in May to 25.3% in June, which may reflect the LIC’s concerns at record high share prices.
WAM Research Limited (ASX: WAX)
WAX is another Wilson LIC that also focuses on small- to mid-cap ASX companies, using a slightly different investing strategy to WAM Capital. WAX also boasts a solid history of outperformance behind it, with a 16.2% return per annum since 2010. WAX is currently paying a grossed-up dividend yield of 10.42%. The WAX investment portfolio decreased 0.5% in June and is sitting on an NTA per share of $1.18 (a 17% premium to its current share price of $1.38).
WAX also increased its cash reserves in June to 25.4%, up from May’s levels of 21.9%. Unlike WAM Capital, WAX doesn’t engage in short positions in ASX shares.
Although both WAM and WAX have a good history of outperformance, both LICs have trailed the index in recent years, yet still command a healthy price premium. I personally would wait for this discount to significantly narrow before opening a position, but as income stocks, both WAM and WAX remain attractive.
Fore some cheaper blue-chip dividends, don't miss our Foolish favourites here!
With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
Hint: These are 3 shares you’ve probably never come across before.
They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”
We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."
Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!
The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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.