Listed investment companies and listed invest trusts continue to offer investors an attractive source of dividends and distributions, with many LIC dividends fully franked. We calculate that LICs with an Australian large cap shares focus currently offer an average dividend yield of 4.4% while those with an Australian mid to small cap shares focus offer an average yield of 4.6%. In our latest LMI Monthly Update we identify 23 LICs/LITs with yields of 4.4% or better. However, we also point out that dividend sustainability is a critical issue when choosing LICs and look at a number of considerations to help determine which LICs are likely to maintain dividends during market downturns.
Peter has 35 years’ experience in the banking and finance industry, including 15 years as an equities analyst. Peter was a sector head in the equities research team at Morningstar with a focus on consumer and industrial companies.