The LICs offering the most consistent returns and dividends

It's that time of the year again, when we trawl through the world of listed investment companies (LICs) to find those that have delivered the most consistent dividends and total returns over the past few years.

A LIC is a closed-end fund that trades on the ASX like a regular stock, with a manager actively investing a pool of capital. Unlike ETFs, the share price is driven by supply and demand rather than the underlying portfolio value, which is why LICs can trade at a discount or premium to their net tangible assets (NTA).

There are currently 91 LICs trading on the ASX, up from 86 a year ago. The bulk revolve around Australian equities (45), followed by international equities (31), with the rest offering various infrastructure, private equity and credit-related exposures.

Before we look at the leaderboard, here are some aggregate numbers for FY25:

• Average dividend yield: 7.55%
• Median dividend yield: 5.97%
• Average TSR: 7.07%

And for the last five years (FY21-25):

• Average dividend yield: 6.84%
• Median dividend yield: 5.45%
• Average TSR: 12.35%

The average LIC trades at a 9.27% discount to its pre-tax NTA, as at 28 February, 2026.

To add some perspective, the widely held Vanguard Australian Shares ETF (ASX: VAS) has averaged a yield of 3.35%, with an average TSR of 12.22% over FY21-25. On a total return basis, the average LIC has slightly outpaced VAS (ex-fees) 

The LICs you should be watching

Before we dive into the lists and rankings – here’s what we measured over the past five years.

• Risk-adjusted total shareholder return (TSR) – how total returns (capital gains plus dividends) a fund delivers per unit of volatility. A fund returning 15% with small annual swings scores higher than one returning 20% with wild fluctuations.
• Risk-adjusted dividend yield – same concept but applied to dividend yield alone.
• Most consistent dividend yield – measures how stable the yield is relative to its own average.
• Most consistent TSR – same as the above, but for total shareholder returns

The chart below plots each LIC's risk-adjusted dividend yield against its risk-adjusted TSR, with the size of the bubble representing the average dividend yield. The further right a fund sits, the more reliable its income stream. The higher up, the smoother its total returns. The ideal LIC sits in the top-right corner, which is obviously unachievable because higher returns require taking on more risk.

At a glance

Global Value Fund (ASX: GVF) is the most well-rounded LIC in the dataset. Managed by Staude Capital, it buys global assets trading at a discount to their underlying value and works to unlock that discount through specific catalysts. It pays a solid 5.7% average yield that barely moves year to year, while delivering smooth total returns of 14.9% annually. It was one of the few funds that did not post a negative return in FY22 and is the closest thing to a top-right-corner fund on the chart.

Katana Capital (ASX: KAT) is another consistent performer, though the smallest fund on the list, with a market cap of just $43 million. Its 1.76% average yield is modest, but total returns have averaged 11.24% over the last five years. It was also one of the few funds that recorded positive returns in FY22.

Metrics Income Opportunities Trust (ASX: MOT) averages an 8.0% yield and that payout has been climbing steadily rather than jumping around. The trade-off is that its share price bounces around more, but for income-focused investors, it's hard to beat. Managed by Metrics Credit Partners, the trust invests across the full spectrum of Australian private credit, including loans, notes, bonds, and equity-like instruments.

Whitefield Industrials (ASX: WHF) is the single most predictable dividend payer in the dataset, with its yield ranging between 3.7% and 4.0% over the last five years. No other LIC comes close to that level of income stability. It's an old-school LIC that invests in a portfolio of large-cap Australian industrial shares (ex-resources), with a focus on companies that pay reliable, fully franked dividends. The catch is that returns are heavily dividend-driven. Over the last four years, WHF has averaged annual dividend yields of 3.90%, with total returns of just 4.64%.

BKI, GCI, and MXT form a tight cluster of income funds with the smoothest total returns. They've been effective at avoiding large drawdowns while paying a modest dividend yield.

WAM Microcap (ASX: WMI) pairs an unusually high yield with payout consistency. Its 7.0% average yield has barely wavered over five years, making it the highest-yielding fund among the most consistent dividend payers. However, its share price is significantly bumpier, an unavoidable feature of microcap investing, so total returns can swing around (but still average 13%). Managed by Wilson Asset Management, it invests in micro and small-cap ASX companies. The fund is supported by a well-known profit reserve strategy that banks excess returns in good years to smooth future dividends.

Regal (ASX: RF1) offers the biggest returns but with a much wilder ride (hence why it sits in the left corner). Its 26.7% average total return and 11.7% average yield look exceptional, but the year-to-year swings are enormous and the dividend payout has been high but inconsistent. In FY21, the fund's TSR was 139.8%, followed by -28.7% in FY22 and a flat FY23. Managed by Regal Partners, it runs a multi-strategy approach spanning market-neutral equities, global alpha, small-caps, water rights, and resource royalties.

Discount to NTA

Most LICs trade at a discount due to poor liquidity, higher fees, a growing preference for ETFs and latent tax liabilities.

Only a handful of LICs trade at a premium to NTA, including GVF (+8.1%), PL8 (+19.9%), PGF (+8.9%), WMI (+17.6%), ECL (+16.3%), and GLS (+13.8%). 

Meanwhile, the old-school LICs that score well on consistency (AUI, WHF, DUI, CIN) all trade at deep discounts of 18–22% despite their excellent track records.

The bottom line

Most LICs will underperform a low-cost index ETF like VAS over time, especially after fees. But for investors who prioritise income stability and are willing to do the work, a handful of funds stand out for delivering reliable dividends, smoother returns, or both.

The challenge, as always, is that past consistency doesn't guarantee future results, and the persistent discounts on some of the best performers suggest the market remains sceptical about the value add of LICs.