But that doesn't mean no ASX All Ords shares are scheduled to dole out their latest dividends. In fact, next week will see four All Ords shares trade ex-dividend for their latest shareholder payments.

Remember, when a dividend share trades ex-dividend, it rules a line in the sand regarding who gets to receive the dividend payment in question.

Put simply, any investor who is on the record as owning a company's shares as of the market close the day before that company trades ex-dividend is eligible to receive the latest dividend payment. But anyone who buys shares on or after the ex-dividend date misses out.

So if you want to bag any of the dividends from the four ASX All Ords shares we're about to discuss, you know what you have to do.

4 ASX All Ords shares set to trade ex-dividend next week

WAM Leaders and Amcor

First up is the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE). WAM Leaders is set to pay out an interim dividend of 4.6 cents per share, fully franked, on 31 May at the end of this month.

But the company's ex-dividend date has been set for Monday, 20 May. That means that anyone wishing to bag this dividend will need to own WAM Leaders shares as of Friday's market close.

This LIC currently sports a dividend yield of 6.52%.

Let's discuss All Ords share and packaging giant Amcor plc (ASX: AMC) now. Amcor is a dual-listed company that pays quarterly dividends rather than the usual biannual schedule. Its latest payment, covering the three months to 31 March 2024, is set to be distributed on 11 June next month. It will be worth 19.3 cents per share but will come unfranked.

Amcor is currently trading on a dividend yield of 4.91%.

Orica and Whitefield

Next up, we have All Ords chemical and explosives manufacturing share Orica Ltd (ASX: ORI). Orica shares will deliver an interim, unfranked dividend of 19 cents per share on 3 July. But the company is set to go 'ex-div' for this latest payment on Thursday, 23 May next week. That means Wednesday is the last day you can buy Orica shares with the rights to this dividend attached.

Orica is trading on a dividend yield of 1.63% at present.

Last but not least, let's dive into another All Ords share and LIC in Whitefield Industrials Ltd (ASX: WHF). Whitefield is the ASX's oldest LIC, and has a very long history of paying out chunky dividends. The company's next interim dividend will come in at 10.2 cents per share, with full franking credits attached.

However, investors must buy Whitefield shares by next Thursday, 23 May, to receive this payment. The LIC is set to trade ex-dividend next Friday, 24 May. The dividend payday will then roll around for eligible investors on 13 June next month.

At current pricing, Whitefield can boast of a 3.93% dividend yield.

The post 4 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

When an ASX income-producing share pays a dividend, it needs to inform the market of the date on which any new shareholders will be cut off from receiving the said dividend. This is known as the ex-dividend date. And because new shareholders can't receive this dividend, its value leaves the company's share price. This usually results in a commensurate share price drop.

So here are 5 ASX dividend shares that will experience this in the coming week. So keep your eyes out for that ex-dividend slump.

5 ASX shares going ex-dividend this week

Elders Ltd (ASX: ELD)

Our first dividend share trading ex-dividend this week is agri-business Elders. Elders is scheduled to trade ex-dividend today, meaning that you had to have owned shares on Friday at the latest if you are to receive this company's final dividend of 22 cents per share, 20% partially franked, that will be paid out on 17 December. At Friday's closing share price of $11.79, Elders shares have a dividend yield of 3.56%.

Amcor CDI (ASX: AMC)

Packaging giant Amcor is another share that is scheduled to trade ex-dividend this week, on Tuesday to be precise. Shareholders can look forward to receiving Amcor's unfranked quarterly dividend of 16 cents per share on 14 December. At Amcor's last share price of $16.60, this company has a dividend yield of 3.78%.

Whitefield Limited (ASX: WHF)

One of the ASX's 'old-school' listed investment companies (LICs), Whitefield is another ASX share trading ex-dividend this week. Whitefield's fully-franked interim dividend of 10.25 cents per share will hit investors' bank accounts on 10 December after the company trades ex-div on Wednesday. At Whitefield's last share price of $5.83, this LIC has a dividend yield of 3.52%.

GrainCorp Ltd (ASX: GNC)

Another agri-business going ex-dividend on Wednesday is GrainCorp. Investors can look forward to receiving GrainCorp's final dividend of 10 cents per share, fully franked, on 9 December. At Friday's last share price of $7.20, GranCorp shares offer a yield of 2.5%.

Nufarm Ltd (ASX: NUF)

Our last ASX dividend share for today is another agricultural company in Nufarm. This chemicals manufacturer will be sending its final and unfranked dividend of 4 cents per share out the door on 17 December after it trades ex-dividend on Thursday this week. At the last share price of $4.81, Nufarm had a dividend yield of 0.58%. Nuf said.

The post 5 ASX shares that could slump this week appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most are listed below. Here's why they are dropping today:

Buddy Technologies Ltd (ASX: BUD)

The Buddy Technologies share price has crashed 42% lower to 2.5 cents. This morning the embattled smart device company announced firm commitments for a placement to institutional, professional and sophisticated investors to raise $6.5 million before costs. These funds are to be raised at 2.5 cents per new share, representing a 42% discount to its last close price. The company will now seek to raise a further $10 million at the same price through an entitlement offer. Though, it is worth noting that investors can currently buy shares for the same price on-market.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price has fallen 6% to $4.65. Investors have been selling the gold miner's shares following the release of an update on its production in FY 2021. According to the release, Evolution's production came in at 681,000 ounces with an all-in sustaining cost of A$1,215 per ounce in FY 2021. Although this was in line with its original guidance, it fell short of the upgraded guidance given in April of 695,000 to 710,000 ounces.

Medical Developments International Ltd (ASX: MVP)

The Medical Developments International share price is down 5% to $4.16. This follows the release of an update on a balance sheet review. Following the review, the company expects to recognise a non-cash charge of $7.5 million to $8.5 million after tax in FY 2021. This relates to its respiratory business, which has been adversely impacted in FY 2021 by the COVID-19 pandemic. As a result, the company expects to post a loss after tax of $11.7 million to $13.7 million for the year.

Whitefield Limited Fully (ASX: WHF)

The Whitefield share price is down 7% to $5.80. This follows the completion of the investment company's placement this morning. Whitefield raised $50 million via a placement to sophisticated and professional investors at $5.56 per share. This represents a discount of 10.8% to its last close price. The proceeds will be invested in a diversified portfolio of ASX listed equities, cash, or cash equivalents. This in line with its investment objectives and strategy.

The post Why Buddy, Evolution, Medical Dev International, & Whitefield are dropping appeared first on The Motley Fool Australia.

The income on offer from the bank is very low these days. It's not really a surprise considering how low the RBA interest rate is at just 0.25%.

If capital protection is your main focus then term deposits may still be the most appropriate choice. Investing in shares opens you up to the volatility of the share market. Shares can help overcome the long-term negative of inflation. Just be aware that share prices can go down sometimes.

Here are three ASX dividend shares that you could buy to replace the income of a term deposit:

Share 1: Rural Funds Group (ASX: RFF)

Rural Funds has a great business model to deliver good income and growth. It's a farmland landlord that aims to increase its distribution by 4% per annum. That's a decent growth rate for an ASX dividend share.

It can do that thanks to two main factors. The first reason is that rental indexation is built into its rental contracts. Rent is contracted to grow each year by a fixed 2.5% annual increase or grow by CPI inflation, plus market reviews.

The other helpful factor is that Rural Funds is re-investing around 20% of its adjusted funds from operations (AFFO) into productivity improvements at its farms for the tenant. This boosts the value of the farm and increases the rental income.

It's invested across a diverse farming portfolio of cattle, cotton, macadamias, almonds and vineyards. It currently has a forecast FY21 distribution yield of 5.7%. I think that's a solid starting yield for an ASX dividend share.

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I believe Soul Patts is one of the best ASX dividend shares. It has paid a dividend every year since it started in 1903. Soul Patts has also grown its dividend every year since 2000. It currently has a grossed-up dividend yield of around 4.4%

Soul Patts owns a diversified portfolio of listed and unlisted businesses. Each year Soul Patts receives a stream of investment income from its holdings. After paying for operating costs, Soul Patts then pays out most of the net cashflow to shareholders. In FY19 it retained about 20% of its net cashflow to re-invest for more opportunities to grow the cashflow and dividend in future years.

The ASX dividend share is invested in ASX businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API), Milton Corporation Limited (ASX: MLT) and Clover Corporation Limited (ASX: CLV).

Share 3: Whitefield Limited (ASX: WHF)

Whitefield is one of the oldest listed investment companies (LICs) on the ASX. It was founded in 1923.

Its portfolio is largely focused on ASX blue chips. Some of its biggest holdings are CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG) and APA Group (ASX: APA).

It has a higher focus on 'industrial' businesses and aims to outperform the S&P/ASX 200 Industrials Accumulation Index over rolling 5-year periods.

The ASX dividend share has a very reliable record over the last 25 years, with no dividend cuts. It's not guaranteed that the dividend won't be cut in the future. However, I think it's a good sign that the company has maintained the dividend even during times like the GFC.

One of the other attractive things about Whitefield is its reasonably low operating cost. According to Whitefield, its operating expense ratio is approximately 0.40% of gross assets.

It currently has a grossed-up dividend yield of 6.5%.

Foolish takeaway

Each of these ASX dividend shares have solid dividend records and attractive starting yields. If I had to start with one it would be Soul Patts because of its consistent dividend growth and diversification.

The post 3 ASX dividend shares to buy and replace a term deposit appeared first on The Motley Fool Australia.

What is Whitefield?

Whitefield is a listed investment company (LIC). It's one of the oldest on the ASX, it has been around since 1923.

Why Whitefield might be one of the best ASX dividend shares

It can point to a record of dividends that have been maintained or grown every year over the past 25 years.

In today's FY20 result the LIC declared a final dividend of 10.25 cents per share, compared to 10 cents per share last year. That is in addition to the 10.25 cents per share it paid as the interim dividend, compared to the prior year's 9.75 cents per share.

That brings the FY20 grossed-up dividend yield to 6.6% at today's share price. I think that's a solid yield in today's environment. 

FY20 result

The ASX dividend share announced an operating profit after tax of $17.66 million. This equated to earnings per share (EPS) of 17.8 cents, a decrease of 3.7%.

Whitefield said that the financial year to March saw two periods. The first 10 months of the year saw moderately widespread dividend and distribution growth from a majority of shares in the portfolio. There was some weakness in the financial and banking sectors. However, the emergence of COVID-19 and the containment measures in February and March meant companies began to cut or defer dividends to preserve cash. I think we're likely to see cuts for the next 12 months. 

Some of the businesses that delivered distribution growth was Brambles Limited (ASX: BXB), ASX Ltd (ASX: ASX) and Medibank Private Limited (ASX: MPL).

Whitefield's portfolio return for the full year amounted to a negative 8.88%. This outperformed the S&P/ASX 200 Industrials Accumulation Index by 3.15%. I think that's a solid performance. 

Whitefield's outlook

The ASX dividend share said that the outlook is dominated by COVID-19. I don't think that's surprising. Remember its profit is determined by investment returns. The near-term is full of uncertainty and the financial impacts are "profound". Whitefield said there is likely to be a very material downturn in both 2020 and 2021.

Whitefield expects to maintain its dividend in the December 2020 result, but said investors should be aware it may have to review its dividend payments if conditions continue to deteriorate.

Seeing as Whitefield is currently trading at around its net asset value, I'm not in a rush to say it's a buy. But I think Whitefield is one of the best ASX dividend share ideas for conservative income.

The post Is this the best ASX dividend share? appeared first on The Motley Fool Australia.

Whilst both strategies are equally valid, I think that a certain class of share is being left on the sidelines – perhaps to the detriment of investors.

What are LICs?

Listed investment companies (or LICs for short) are not a new invention. In fact, the oldest LIC on the ASX – Whitefield Limited (ASX: WHF) – has been around since 1923, before even the Great Depression!

 LICs work through a company structure – they're essentially companies that invest in other companies for the benefit of their owners (shareholders). By holding their own shares, they can pass on profits, received dividends and franking credits straight through to their shareholders in a very efficient manner.

In this way, you can invest in one individual share but gain yourself exposure to the basket of companies that the LIC holds. So in that way, LICs are similar to ETFs. But unlike ETFs, LICs usually have management teams that select the shares on merit, rather than going off an indexed algorithmic formula.

In this way, many LICs concentrate on a specific investing goal. Some focus on international growth companies, while others concentrate purely on maximising dividend income for their shareholders.

Some ASX examples

A famous example of the latter is WAM Research Ltd (ASX: WAX). WAM Research is run by one of the LIC structure's biggest proponents – Wilson Asset Management. This LIC focuses on finding undervalued ASX growth companies and selling them when their 'true' value is reached. It then pays out its profits as fully franked dividend income.

Over the past 10 years, WAM Research has returned an average of 16.5% per annum to its investors (before fees), which includes its whopping 6.5% fully franked dividend yield (on current prices).

Another top performer has been MFF Capital Investments Ltd (ASX: MFF). This LIC focuses more on top quality growth stocks from the US markets – currently holding companies like Visa, Mastercard, Coca-Cola and Alphabet. MFF has also returned an impressive 18.83% per annum over the last decade to its lucky shareholders (which I am fortunate enough to count myself among).

The best thing is I don't have to worry about anything except buying more shares when a good opportunity arises. MFF's management takes care of the hard things like choosing which companies to invest in or sell.

Foolish takeaway

I think these 2 LICs demonstrate the benefits of this type of asset vehicle and why I think everyone should at least consider a good LIC as part of a well-balanced portfolio. They can be a nice alternative to managed funds and ETFs if those vehicles don't appeal to your own strategies.

The post Why I think LICs should be in your ASX portfolio appeared first on The Motley Fool Australia.

The key is looking at stocks that you might own as buying stakes in well-run businesses. Having this mindset will change the way you think about investing and make sure you are less worried about seeing red on the night-time news.

The easiest way to get started with investing (in my opinion) is outsourcing some of the tough decisions at first to professional investors that make a living from choosing quality companies. Here are two ASX shares that do just that and, in my view, would make for a great first, second, or even twentieth investment.

Magellan Global Trust (ASX: MGG)

Magellan Global Trust is a listed investment trust (LIT) that invests in some of the best companies in the world. The Magellan Financial Group (ASX: MFG) has built a name on building quality investment vehicles and does a pretty good job of picking stock for you. Some of MGG's current holdings include Mastercard, Microsoft, Alphabet Inc. (Google) and Starbucks, so you are getting a slice of all these great companies with one MGG share. MGG also targets a 4% cash distribution each year, so you can either get a great source of passive income as well or reinvest this money at a 5% discount for more MGG shares through its reinvestment program.

MGG charges a management fee of 1.35%, but this may be worth it considering MGG has delivered a 16.22% return since its inception.

Whitefield Limited (ASX: WHF)

Whitefield is a listed investment company (LIC) that was founded back in 1923. Since then, Whitefield has built a reputation as a steady hand, with a stable and conservative investing portfolio of Australian shares that would suit beginners very well, in my opinion. Some of Whitefield's current top holdings include Commonwealth Bank of Australia (ASX: CBA) and Medibank Private Ltd (ASX: MPL).

Whitefield currently charges a management fee of 0.4%, pays a 4.08% dividend (on current prices) and has delivered a performance of roughly 11.5% annually over the past 10 years.

Foolish takeaway

If you're thinking about getting started with investing, both of these companies would be good first choices (in my opinion). Both WHF and MGG are easy investments that let others do the hard work of actually choosing individual companies for you, while also having great track records to give you some confidence that your money is being put to work.

The post 2 simple ASX shares for a starter portfolio appeared first on The Motley Fool Australia.

It seems almost impossible to live off cash in the bank unless you have several million in there.

Therefore it makes sense that people would look a bit further up the risk curve to boost their income. I think shares are the best answer, but not every share with a yield is worth buying.

As interest rates fall, share prices generally rise, so I think it's still important to assess the value you are getting when you buy shares.

Old faithful dividend shares like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Telstra Corporation Ltd (ASX: TLS) are not the safe dividend shares they used to be in my opinion.

Resource shares like BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) are doing well but are probably near the top of the cycle.

Many investors are flocking to real estate investment trusts (REITs) such as Arena REIT No 1 (ASX: ARF), Rural Funds Group (ASX: RFF) and Goodman Group (ASX: GMG). But these businesses are now trading at high valuations compared to their underlying assets.

Therefore, I think the best approach for dividends might be to invest in diversified investment options like listed investment companies (LICs) and certain exchange-traded funds (ETFs).

The ASX as a whole is known for its dividends, so low-cost ETF options like Vanguard Australian Share ETF (ASX: VAS) or BetaShares Australia 200 ETF (ASX: A200) could be ideas to consider.

Some LICs have reputations for dividends like Whitefield Limited (ASX: WHF), WAM Microcap Limited (ASX: WMI), WAM Research Limited (ASX: WAX) and Naos Emerging Opportunities Company Ltd (ASX: NCC). They all offer income at much higher levels compared to term deposits, with the potential for long-term capital growth as well.

Foolish takeaway

There are plenty of dividend yield options that are still trading at reasonable value with high yields.

Out of the shares I've mentioned, I am personally interested in the small cap LICs of Naos Emerging Opportunities and WAM Microcap as long-term investments because smaller businesses, which is their hunting ground, are still at lower valuations whereas bigger shares have recovered. Plus, smaller businesses have the largest potential to generate strong returns if chosen well. 

The post Where to now for income yield investors? appeared first on The Motley Fool Australia.

The concept is simple. Save as much money as you can (while happily living your life) and squirrelling it away into investments and then let compound interest help you get to FIRE. Many of them are aiming to retire by 40 or even earlier.

Some aspirational Aussie FIRE-ers may have previously said that investing in residential real estate could be a good strategy to achieve FIRE. But falling house prices, low rental yields, rising interest rates and the need to take on huge debt are several reasons why this avenue doesn't look so good at the moment.

Instead, I think investing in shares is the best way to go.

To me, there are three stress-free options to get to FIRE with ASX shares:

Broad index-based Exchange traded funds (ETFs)

General investing advice would say that the simplest way to get to a strong wealth position is to go with ETFs, which gives you exposure to a broad range of shares in one investment. It makes investing very easy. There's hardly any initial research except choosing one of the ETFs amd you don't have to worry what's happening at individual companies along the way. You just regularly invest throughout the economic cycles.

Considering most share market indexes have returned an average of 10% a year, it would be a great strategy.

Just one, or a mix, of iShares S&P 500 ETF (ASX: IVV), Vanguard US Total Market Shares Index ETF (ASX: VTS), Vanguard MSCI Index International Shares ETF (ASX: VGS), Vanguard Australian Share ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200) could be great choices for their low costs and pleasing returns.

Listed investment companies (LICs)

Another option is to go for LICs. Most LICs also have diverse portfolios, they choose what shares to buy (and sell) and have more control over the dividend payments to smooth them out through economic booms and busts.

Some of the old-school LICs have low management fee costs and stable dividend histories such as Australian United Investment Company Ltd (ASX: AUI), Whitefield Limited (ASX: WHF), Australian Foundation Investment Co. Ltd. (ASX: AFI) and Argo Investments Limited (ASX: ARG). They generally have matched the returns of the market over the long-term.

However, there are also other LICs that try to generate market-beating returns whilst paying out pleasing dividends such as WAM Research Limited (ASX: WAX), WAM Microcap Limited (ASX: WMI), MFF Capital Investments Ltd (ASX: MFF), Naos Emerging Opportunities Company Ltd (ASX: NCC) and Clime Capital Limited (ASX: CAM)

High-quality alternatives

Other simple ways of reaching your FIRE wealth target could be long-term alternatives such as listed investment trusts (LITs), two of my favourites are Magellan Global Trust (ASX: MGG) and Ophir High Conviction Fund (ASX: OPH), which have outperformed their index benchmarks materially since inception.

Real estate investment trusts (REITs) are worth considering, such as farm landlord Rural Funds Group (ASX: RFF).

There are also interesting individual companies that could generate non-cyclical market-beating returns such as water entitlement business Duxton Water Ltd (ASX: D2O) and investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

If I could only pick three of the above ASX shares, aside from the globally-focused ETFs, to help me reach FIRE it would be Soul Patts, Magellan Global Trust and MFF Capital.

The post How to retire early (FIRE) with ASX shares appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX futures pointing lower.

Unfortunately, it looks as though the local market is going to give back some of yesterday's gains. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.5% lower on Friday. This comes after heavy declines in the UK and Europe overnight. Wall Street was closed for the Thanksgiving holiday.

Technology One insider share sale.

The Technology One Limited (ASX: TNE) share price will be on watch on Friday after it emerged that the information technology company's management were offloading $44 million worth of shares at a discount of $5.55. According to the AFR, UBS is handling the sale of the 8 million shares. Technology One's shares hit a 52-week high on Thursday after investors responded positively to its latest results release.

Oil prices slide.

Energy shares such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch again on Friday after oil prices dropped back. According to Bloomberg, the WTI crude oil price fell 1.4% to US$53.85 a barrel and the Brent crude oil prices dropped 1.4% to US$62.60 a barrel.

Annual general meetings.

Energy company Beach Energy Ltd (ASX: BPT) is due to host its annual general meeting today in Adelaide. Shareholders will no doubt be eager to see what management says about the impact of lower oil prices on its business and profits. Outside the ASX 200, outdoor retailer Kathmandu Holdings Ltd (ASX: KMD) and struggling entertainment company Village Roadshow Ltd (ASX: VRL) are due to host their respective events today.

Shares going ex-dividend.

The DuluxGroup Limited (ASX: DLX) share price is likely to trade lower on Friday after going ex-dividend this morning for its final fully franked 14 cents per share dividend. This dividend will be paid to eligible shareholders of the paints company on December 12. Elsewhere on the market, Ruralco Holdings Ltd (ASX: RHL) and Whitefield Limited (ASX: WHF) shares will be going ex-dividend this morning as well.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

That's why I think many investors focused on income should consider listed investment companies (LICs). The structure allows these companies to pay out capital gains & income received out as a regular dividend.

Here are three LICs with attractive dividend yields:

NAOS Ex-50 Opportunities Company Ltd (ASX: NAC)

This LIC is run by Naos and aims for businesses that are mid-to-large caps, but outside of the top ASX 50, as the name suggests.

Its portfolio has been successful with this hunting ground, it has delivered average annual returns of 18.1% over the past three years, after expenses but before fees.

The solid returns have allowed the LIC to increase its dividend each year since the second half of FY15. It currently has a grossed-up dividend yield of 7.4%.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is operated by the high-performing Wilson Asset Management investment team. This particular LIC also focuses on the larger end of the ASX with most of its top holdings being recognisable blue chip names.

Over the past year its portfolio grew by 17.2%, outperforming its benchmark by 1.8%. The other WAM LICs have a good record of regularly increasing the dividend and WAM Leaders could be another pleasing dividend payer.

It currently has a grossed-up dividend yield of 6%.

Whitefield Limited (ASX: WHF)

Whitefield is one of the long-running LICs of the ASX, it's been going since 1923. Over the past two decades it has grown or maintained its dividend every single year – this is an impressive record.

Its top holdings fairly closely resembles the top of the ASX Index, however there are differences and it has been one of the top-performing large cap focused LICs according to Wilsons.

It currently has a grossed-up dividend yield of 5.4%.

Foolish takeaway

None of the above LICs are among my favourite due to their investment focus, but they are all pretty good options. At the current prices if I had to choose one it would be Naos due to its medium-term performance and the discount to the NTA.

The post 3 LICs with high dividend yields appeared first on The Motley Fool Australia.

Why bother giving a lot of your money to Commsec to buy shares of Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and BHP Billiton Limited (ASX: BHP) when you could save hundreds of dollars by buying a listed investment company (LIC) that owns all those shares.

One of the best LICs in the large cap space in my opinion is Whitefield Limited (ASX: WHF). It has been operating since 1923.

Its top holdings are pretty similar to the index with Commonwealth Bank, Westpac Banking Corp (ASX: WBC) and CSL Limited (ASX: CSL) being its three largest holdings.

The main attraction to me about Whitefield is that its dividend has been maintained or increased over the past 20 years. That provides wonderful certainty for people who require a consistent level of income. Plus, the dividend has just been increased after a decade of being at the same level. The grossed-up yield is currently 5.2%.

Over the past five years Whitefield has created a perfectly acceptable return of around 10% when you add the share price and dividend returns together.

The good thing about Whitefield is that it has a very low management cost of around 0.25% per annum. This is a lot cheaper than most other LICs on the market.

Foolish takeaway

It's probably trading at a discount of around 8% to 10% to its pre-tax NTA at the moment. I think this is useful considering you're buying the underlying assets at a decent discount. Whitefield could be a good choice for retirees, however for people looking to beat the market I think there are much better share options.

The post Here's why this LIC could be called one of Australia's safest dividend shares appeared first on The Motley Fool Australia.

I'm not saying we're about to have a crash, but I am saying we're probably closer than we have been to the next downturn (by definition that must be the case).

When markets eventually do take a tumble, I only want to be holding quality companies that have a strong chance of making it out the other side. No speculative stocks or pie-in-the-sky business concepts for my portfolio!

Instead, I want companies that will simply keep plodding along and return cash to shareholders in the form of steady dividend payments.

The following LICs have proven themselves to be good stewards of shareholder's capital and provide a rock-solid dividend stream when the economy is sailing through choppy waters…

Australian Foundation Investment Co.Ltd. (ASX: AFI)

The largest LIC on the Aussie market, AFI manages a portfolio of around $7 billion and pays a very reliable and growing dividend to shareholders, which it sources from its portfolio of 100 businesses.

During the GFC, the company suffered large share price falls with the market. But AFI was actually able to keep paying the same dividend, so shareholders who simply focused on their dividend stream may have wondered what all the fuss was about.

AFI currently trades on a yield of 3.9%, or 5.6% grossed-up.

Whitefield Limited Fully Paid Ord. Shrs (ASX: WHF)

Whitefield is a much smaller LIC with a market cap of around $400 million. The company holds a portfolio of 160 stocks, focused on the ASX200 Industrials (non-resources). It often goes unnoticed and regularly trades at a discount. But despite its lack of popularity, Whitefield has provided an extremely reliable dividend over the years.

During the GFC it was able to keep its dividend steady and has recently begun increasing it again. In fact, the company has not cut its dividend in over 20 years.

Whitefield currently trades on a yield of 3.9%, or 5.6% grossed-up.

Foolish takeaway

When the market is rising and there are quick capital gains on offer, dividend-paying shares tend to fall out of favour. But as the market takes a tumble, the attractiveness of a reliable dividend becomes apparent once again.

I'm betting on these LICs to keep investing prudently and provide shareholders with a dependable fully-franked dividend during the next market downturn.

The post 2 LICs that could help you survive the next downturn appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.61% to 6,097.80
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.58% to 6,198.70
• AUD/USD at US 75 cents
• Gold at US$1,311.78 an ounce
• Brent Oil at US$78.22 a barrel

The Link Administration Holdings Ltd (ASX: LNK) share price was one of the best performers in the ASX200, it went up 5.3% after updating the market to say that the recent Budget superannuation changes could mean roughly a $50 million hit to revenue. However, it has some mitigating factors that could limit the impact.

Automotive Holdings Group Ltd (ASX: AHG) shares fell by 9.1% after the car dealership business announced that it was operating in challenging trading conditions.

The Healthscope Ltd (ASX: HSO) share price has fallen 2.7% after AustralianSuper said it would reject the higher Brookfield offer.

TV company Seven West Media Ltd (ASX: SWM) didn't make good viewing for shareholders as the share price dropped by 7.3%.

Telstra Corporation Ltd (ASX: TLS) shares dropped a further 4.9% after telling investors yesterday it would only hit the minimum figure of its profit guidance.

The share price of GWA Group Ltd (ASX: GWA) fell by 4.8%, losing most of its gains after announcing the sale of its door business.

Ruralco Holdings Ltd (ASX: RHL) finished the day up 0.32% after reporting a pleasing increase in its profit.

Finally, the Whitefield Limited (ASX: WHF) share price went down by 0.43% after reporting its full-year result.

Here are some of today's top stories:

• Can Microsoft & the Commonwealth Bank of Australia challenge Xero Limited?
• The Afterpay Touch Group Ltd share price rockets on US market launch
• Why the EML Payments Ltd share price is rocketing higher today

The post ALL ORDINARIES finishes lower Tuesday: 8 shares you missed appeared first on The Motley Fool Australia.

I really like the LIC because it has a long-term focus and it has a good reputation for maintaining or increasing the dividend over the ultra-long-term, indeed the dividend hasn't declined over the past 20 years.

Today, the company announced that it was increasing its final dividend by 5.9% to 9 cents per share from 8.5 cents compared to the previous year. The company said that its operating earnings per share (EPS) increased by 5.3% this year to 17.79 cents per share.

The LIC attributed the operating result to increased distributions from some of its major positions like Cimic Group Ltd (ASX: CIM), Transurban Group (ASX: TCL), Insurance Australia Group Ltd (ASX: IAG) and Macquarie Group Ltd (ASX: MQG).

Whitefield was pleased to say that its operating expenses to assets amounted to 0.4%, which is quite cheap compared to most other LICs.

The LIC said that over the past five years its portfolio return stood at 9.07% per annum, which beats the company's benchmark, the ASX200 Industrials Accumulation Index return of 8.81% per annum.

Its net asset backing was $4.79 at 31 March 2018 compared to $5.08 one year ago, which is a fall of around 6%, before accounting for the payment of dividends.

Foolish takeaway

Whitefield is currently trading with a grossed-up dividend yield of 5.5%. I like that Whitefield has a large profit reserve, it can pay many years of dividends at the current level. However, I'm wary of Whitefield shares at the moment due to the heavily indebted nature of Australian households, which could have a knock-on effect to Whitefield's biggest holdings.

The post Whitefield Limited (ASX:WHF) reports, should you buy for its 5.5% yield? appeared first on The Motley Fool Australia.

There are some that have been around for many decades like Australian Foundation Investment Co. Ltd (ASX: AFI) and Whitefield Limited (ASX: WHF).

There are also newer LICs that have only joined the ASX in the last few years like WAM Leaders Ltd (ASX: WLE).

WAM Leaders is run by Wilson Asset Management, the high-performing investment team that also run several other LICs like WAM Capital Limited (ASX: WAM) and WAM Microcap Limited (ASX: WMI).

Earlier this week WAM Leaders released its results for the half-year to 31 December 2017. Some of the highlights included:

• Investment portfolio delivered returns of 11.9%, outperforming the index by 3.5%
• Profit before tax increased by 158.8% to $62.7 million
• Fully franked dividend of 2.5 cents, an increase of 150%

WAM Leaders' before tax net tangible assets per share (NTA), after adjusting for dividends, increased by 4.5% for the six months to 31 December 2017.

Geoff Wilson, Chairman, said "WAM Leaders will pay an increased fully franked interim dividend of 2.5 cents per share, consistent with the Board's commitment to provide a growing stream of fully franked dividends to shareholders while preserving their capital and delivering capital growth".

Interestingly, Mr Wilson also went on to point to the value that WAM Leaders is currently trading at, he said at the time "Currently WAM Leaders is trading at a 1.4% discount to NTA as short-term arbitragers and quant traders sell the shares they had purchased during the final months of the option issue. Once this selling pressure has abated, we believe equilibrium will return to the WAM Leaders share price. It is worthwhile to note that all other WAM listed vehicles are trading at a premium to NTA".

Foolish takeaway

All WAM Leaders needs to do is outperform the index after fees and deliver a large fully franked dividend to be a better choice than other large-cap LICs and index products. It's meeting that goal so far, I believe it could be well worth a buy at the current prices.

The post Why WAM Leaders Ltd could be the best large cap LIC appeared first on The Motley Fool Australia.

A factor that could be underestimated is when the dividends are paid. If all your dividends are mainly paid in a few months of the year then that could cause cashflow issues, you'd need to have a focused budget so you don't run out of cash until the next big dividend month.

One idea to get around this conundrum is to buy good shares that pay in months that most others don't. December is an expensive time of year for most people, so it could be a good move to own shares that pay in December. Here are two that fit the bill:

DuluxGroup Limited (ASX: DLX)

DuluxGroup owns many home improvement brands including Dulux, British Paints, Selleys, Cabot's and Yates.

DuluxGroup usually pays its dividend half-yearly in December and June.

I really like the business because it appears to have defensive qualities compared to most other property businesses.

People paint their properties for lots of different reasons in all the different economic environments. Just moving in, selling and renovating are very common reasons to paint and it doesn't matter whether the housing market is 10% up or down that year.

DuluxGroup is almost the perfect definition of a slow-and-steady growth stock, but it also has a pleasing dividend yield.

It's currently trading at 21x FY18's estimated earnings with a grossed-up dividend yield of 4.8%.

Whitefield Limited (ASX: WHF)

Whitefield is one of the oldest listed investment companies in Australia, having been around since 1923.

It focuses on the large end of the Australian share market with big stakes in businesses like Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES).

Whitefield usually pays its half-yearly dividend in June and December.

Its portfolio has done well thanks to the growth of the Australian economy over the past 25 years. Whitefield's future success is heavily dependent on the ASX's largest businesses also doing well.

Whitefield is currently trading with a trailing grossed-up dividend yield of 5.14%.

Foolish takeaway

Both shares are trading at close to all-time highs, so I'd be hesitant buying today, but there could be a good opportunity to buy over the next few months.

The post 2 income shares to pay for your Christmas appeared first on The Motley Fool Australia.

Inflation and population growth alone are two large reasons why shares will find it difficult not to produce good returns in the future. It's important to always have exposure to the long-term growth of shares.

Most of the large Australian blue chips will be bigger in a decade than they are today. That's why I think it's important to invest in a listed investment company (LIC) like Whitefield Limited (ASX: WHF).

Whitefield has been one of the highest-performing LICs that focuses on the large caps of Australia like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG).

According to Bell Potter's quarterly LIC report Whitefield has grown its pre-tax NTA by an average of 12.8% per annum over the last five years, whereas the Australian Foundation Investment Co. Ltd (ASX: AFI), Argo Investments Limited (ASX: ARG) and Milton Corporation Limited (ASX: MLT) performance was 8.8%, 9.8% and 10% respectively.

Whitefield has been operating since 1923 and has been a great investment for shareholders. It has maintained or increased its dividend every year going back over 20 years. It had maintained its annual dividend at 17 cents per share since the GFC, but it has just increased its half-year dividend to 8.75 cents from 8.5 cents.

Foolish takeaway

The current grossed-up dividend yield is a pleasing 5.18%, which beats the income you could make from term deposits by some margin. Whitefield should be around for at least another 50 years as it slowly builds its net asset per share and gently increases the dividend.

The post Here's why this 5.2% yield should be tempting appeared first on The Motley Fool Australia.

Here are three of the best choices in my opinion:

WAM Capital Limited (ASX: WAM)

WAM Capital is the flagship listed investment company (LIC) run by Wilson Asset Management. Geoff Wilson and his investment team have proven to be very effective managers.

WAM Capital looks to invest in undervalued growth companies which should beat the market. The LIC does this whilst keeping a healthy amount of the portfolio in cash.

It has increased its dividend every year since the GFC and currently has a grossed-up dividend yield of 9.04%.

Rural Funds Group (ASX: RFF)

Rural Funds is the only real estate investment trust (REIT) on the ASX that purely invests in agricultural property.

I like how diverse its properties are across climates and states. It owns farm types including almonds, macadamias, poultry, cattle, vineyards and cotton. It counts Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE) among its quality tenants.

Rural Funds has a large amount of water entitlements for its tenants to use and recently announced it is acquiring another cattle property.

Rural Funds is currently trading with a trailing distribution yield of 4.37%.

Whitefield Limited (ASX: WHF)

Whitefield is one of the oldest LICs on the ASX, dating back to the 1920s.

It invests in the large blue chips on the ASX that we all know like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Wesfarmers Limited (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).

Whitefield has generated the highest returns out of the LICs that focus on big companies over the last five years. It could continue to outperform, which is why I'm interested in buying some of its shares.

Whitefield is currently trading with a grossed-up dividend yield of 5.21%.

Foolish takeaway

All three shares should be solid choices for income over the next five years. I'm a little bearish about the large end of the Australian share market over the next couple of years, so I'd rather put my capital into Rural Funds and WAM Capital first.

The post 3 dividend shares I'd buy today appeared first on The Motley Fool Australia.

However, there is also a group of businesses called 'listed investment companies' (LICs) that trade on the ASX too.

The main aim of LICs is to invest in other shares on behalf of shareholders. Some LICs like Australian Foundation Investment Co. Ltd (ASX: AFI) have been around for many decades. Others are newer but are just as worthy of an investment.

Here are two LICs with good performances and pleasing dividend yields:

Whitefield Limited (ASX: WHF)

Whitefield has been around since 1923. It has been one of the highest-performing LICs that focus on large-cap shares like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Limited (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).

I like Whitefield and believe that it's one of the best LICs to own if you want exposure to blue chips.

It's currently trading with a trailing grossed-up dividend yield of 5.27%

NAOS Absolute Opportunities Co Ltd (ASX: NAC)

This LIC is run by Naos Asset Management. The team like to focus on much smaller businesses than most other investment managers.

The hunting ground of this LIC is for shares with market capitalisations of around $200 million to $400 million.

Typically, its portfolio aims to have around 10 to 15 positions, so it can be a very concentrated portfolio at times.

The investment strategy is working because, before fees, the average return per annum has been 18.14% over the last two years.

It's currently trading with a grossed-up dividend yield of 7.14%.

Foolish takeaway

I like both LICs, but it's hard to say when they are a 'good' buy because of how reliant they are on their own portfolios doing well. That's why I'd be happy to have each of them as a small part of my portfolio and let it grow over time if they continue performing well.

The post 2 shares with good dividends appeared first on The Motley Fool Australia.