Leading LIC Increases Special Dividend Taking Annual Dividend Yield To 11.9%

By Don Hamson | More Articles by Don Hamson

The Board of Plato Income Maximiser Limited (ASX: PL8) today announced an increase in the special dividend to 3 cents per share, taking the annual dividend yield to 11.9% (including franking).

This is a tripling from the special dividend, previously announced on 21 February 2019, of 1c per share.

This special dividend per share of 3c plus the monthly dividends per share of 0.5c results in a total annual dividend of 9c per share (excluding franking credits) or 12.9c (including franking credits) for the financial year to 30 June 2019. This equates to an annualised dividend yield of 8.3% (excluding franking credits) or 11.9% (including franking credits)*.

Plato said the LIC had benefitted from the bumper dividend payments by its portfolio holdings over the previous six months.

The Board decided to pay a special dividend given the potential adverse impact on many of the Company’s shareholders from the ALP’s proposals on franking credits, should they come into effect from 1 July 2019. These proposals may have the capacity to reduce the value of the Company’s franking credits in the hands of nearly half of the Company’s shareholders.

Timetable for the special dividend

  • Ex – Dividend Date: 16 May 2019
  • Dividend Record Date: 17 May 2019
  • Dividend Payment Date: 31 May 2019

Dr Don Hamson, Director of PL8 and Managing Director of Plato Investment Management Limited (the manager of PL8), said today: “Plato’s active income strategy has successfully delivered a high level of income to its investors since its inception and has actively reaped this latest dividend bonanza. The Company is pleased to share the increased returns with our shareholders.”

“This current financial year will be a record for dividend payments in Australia,” he added.

Plato Income Maximiser is the only Australian LIC to pay shareholders a monthly income.

* Based on closing share price on 2 May 2019 of $1.085 per share.

Don Hamson

About Don Hamson

Don is the founding Managing Director of Plato Investment Management. He is well known as a leader in the practical application of after-tax investing. Prior to forming Plato, Don was Head of Active Equities, Asia Pacific at State Street Global Advisors.

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