Peter Siegl

CIE's last dividend dropped to $0.016 from $0.035. If this repeats next time then the yield will only be 3.28%. WAM, WAX and CDM are the best of the above, although WAM and WAX are a bit pricey.

Ian Ashman

I think the 1.6c was for a quarter not the HY.

Michael Wayne

Hi Peter, thanks for your interest in the article. As pointed out by Ian the $0.016 represents a quarterly dividend payment. In recent years CIE has moved from paying half yearly to quarterly dividends.

Phillip Anstis

Thanks for the article. Both WAM & WAX more attractive atm as have come off recent SP highs and present better long term capital growth options. But don't forget Wam Leaders WLE which is trading at an NTA discount and building progressively higher dividend yield, currently 4.0% p.a. and 100% franked. It also has $786 M market cap so about 7x bigger than CIE so it's the long term pick for me atm.

Michael Wayne

Hi Phillip, you make some valid points. Based on long term track records it's hard to argue against WAM and WAX. When looking at LICs it is important to examine the composition of the underlying portfolios to determine whether the particular LIC satisfies what it is the investor is looking to achieve. WLE has over 40% of its FUM invested in ASX 20 businesses many of which retail investors would already own directly. Investing in the likes of WAM, WAX and CIE can allow investors to avoid duplicating existing positions and gain exposure to other parts of the market.