My Say – No. 72

20th Jan 2023

Happy New Year

Happy I am, as it’s that time of year when Santa Claus delivers the data to allow me to update my presentation. So, let’s start with my key slide, Industrial shares versus cash.

The ‘Covid crash’ is like all previous market setbacks, they are relatively short lived.
Whilst share prices were not overly affected, dividends were severely hit. However, as expected they are recovering quickly as the effects of the lockdown dissipate. If one is in tune with history then this pandemic is no different to those we’ve been exposed to over the last 2000 odd years. 

The next slide regular readers will be familiar with; it is a UK listed investment company which forms part of my UK SMSF resulting from an 18-year sojourn back in the 70’s.
Despite all the current and prior market turmoil this chart is always a source of comfort. An income that has risen every year for the last 56 years.

In our home market there are similar Listed Investment Companies (LIC’s) displaying the same characteristics.

Milton is a great example and although it has now merged with Soul Pattinson

The Soul Pattinson dividend history is equally comforting.

Another one of my favourites is Whitefield which is celebrating its 100^th anniversary this year.
My strong preference for this one is the fact that it only invests in Industrial companies and NO resources.

Despite earnings volatility the ability of a listed investment company to smooth their dividends is clearly indicated.

Suffice to say that with an ever-growing income stream over 30, 40, 50+ years, one’s life can remain focussed on what is really important: Family, friends, and career.

I will be picking up the full day presentations in the major capitals over coming months so keep your eye on “Public Speaking” on the website for dates and venues.