The listed investment company (LIC) industry is rising as investors celebrate keeping their franking credits.
A LIC is a business which aims to generate returns for its shareholders by investing in other businesses and assets.
What’s Going On With LICs?
The LIC structure allows investment managers to turn the investment gains they make for shareholders into a dividend stream, (usually) fully franked.
Some of the biggest LICs in the country are well known for their dividends and franking credits.
Australian Foundation Investment Co.Ltd. (ASX: AFI) is the biggest and one of the oldest LICs, its share price is up 2.35%.
Argo Investments Limited (ASX: ARG) is another old and large LIC, its share price is up 1.5%.
Milton Corporation Limited (ASX: MLT) is also an old and famous LIC, its share price is up 2.2%.
Bki Investment Co Ltd (ASX: BKI) is another LIC, although it’s not as old. The Bki share price is up 3%.
There are other LICs which have much bigger dividend yields and the saving of franking credit refunds have an even larger effect on shareholder returns.
For example the flagship of the Wilson Asset Management (WAM) stable, WAM Capital Limited (ASX: WAM), is up 6.3%.
Other WAM LICs are also up. The WAM Research Limited (ASX: WAX) share price is up 6% and the WAM Microcap Limited (ASX: WMI) share price is up 4.5%.
There are a few other LICs that are also moving thanks to their big dividend yields. The Naos Emerging Opportunities Company Ltd (ASX: NCC) share price is up 2.5% at lunch.
However, as expected, some non-franked yield plays are falling today. The Goodman Group (ASX: GMG) share price is down almost 1%, the Scentre Group (ASX: GMG) share price, the Transurban Group (ASX: TCL) share price is down 1.4% and the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is down almost 3%.
There are still a few LICs that are trading at large discounts, but the most popular ones have certainly recovered some of the lost ground. Because of that, I might prefer investing in one of the reliable ASX shares in the free report below.
NEW INVESTING REPORT - SEP. 2019!
Finding ASX shares offering exceptional long term growth and dividends over 3% is rare. Our expert investors have just released a FREE investing report which reveals 3 proven ASX shares.
These three companies have proven themselves to be reliable dividend + growth shares over a decade. Click here to get instant access to the investing report -- updated September 2019.
Absolutely no credit card details or payment required.
Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
Disclosure: Jaz owns shares of WAM Microcap at the time of writing, but this could change at any time.