Is AFIC a good long term investment?
Performance of The Australian Foundation Investment Company
This is what AFIC publish as their portfolio and share price performance – ending 31 December 2022. You can see that AFIC has performed well, with the net asset share price growth plus dividends performing well over the long term.
Purchasing AFIC shares (Trade)
There is no set limit on the number of AFI shares you may purchase, however your broker may apply a minimum amount (typically $500). You can purchase (and sell) AFIC shares as often as you would like, but please be aware of the cost of brokerage that is charged by your broker.
Perhaps the AFIC share price has been falling today partly because investors can find income from other sources? The longer-term decline can be explained by the reduction of the asset value of the portfolio in 2022.
Performance of the largest Australian share market LICs vs ETFs. Many Aussie investors would be familiar with the Australian Foundation Investment Company Limited (AFI), which is by far the largest and most popular LIC with $9.2 billion in FUM. It's also the oldest LIC in the market having listed in 1936.
There are typically 2 dividends per year (excluding specials). Our premium tools have predicted Australian Foundation Invest.
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We pay fully franked dividends as cash payments. Alternatively, AFIC shareholders can elect to reinvest these dividends through our Dividend Reinvestment Plan (DRP) or Dividend Substitution Share Plan (DSSP).
“Simple brokerage accounts are great for children,” says Baum. “They have minimal fees and provide for a buy-and-hold strategy for long-term investing.
Current dividend yield vs market & industry
Notable Dividend: AFI's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.55%). High Dividend: AFI's dividend (3.33%) is low compared to the top 25% of dividend payers in the Australian market (6.84%).
Aflac Incorporated - Buy
Zacks' proprietary data indicates that Aflac Incorporated is currently rated as a Zacks Rank 2 and we are expecting an above average return from the AFL shares relative to the market in the next few months.
Is Pearson a good buy?
Valuation metrics show that Pearson, PLC may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of PSO, demonstrate its potential to outperform the market.
AFIC's investment portfolio includes the following companies: BHP Billiton, Commonwealth Bank of Australia, Westpac Banking Corporation, Rio Tinto, Telstra, Wesfarmers, Woolworths, and AGL Energy.
One of the ETFs in Warren Buffett's portfolio is the Vanguard S&P 500 ETF (VOO 1.16%). This fund tracks the S&P 500 index itself, which means it includes the same stocks as the index and aims to mirror its performance.
Vanguard Wellesley Income (VWINX): The portfolio is very conservative, with an allocation that ranges between 35% and 40% stocks, around 60% bonds, and the rest in around 5% cash.
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|Fund||Dividend Yield||Risk Level|
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|Vanguard Dividend Appreciation Index ETF (NYSEMKT:VIG)||1.96%||Below Average|
|iShares Core Dividend Growth ETF (NYSEMKT:DGRO)||2.34%||Below Average|
|Vanguard Real Estate ETF (NYSEMKT:VNQ)||3.91%||Average|
Australian Foundation Investment Company will pay dividend of 11c per share on 24 Feb 2023. The ex-dividend date for this dividend is 02 Feb 2023. The dividend amount will be paid at franking rate of 100%. Australian Foundation Investment Company is paying dividends since or before Sep 2010.
With hundreds of dividend stocks, VYMI is the most diversified Vanguard dividend fund on our list. And it has the highest dividend yield.
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Is AFIC ethical?
AFIC is committed to the highest standards of ethical behaviour. Explore our company's system of corporate governance below.
Australian Foundation Investment Company Limited's current share price is $7.50. This constitutes a share price movement of -0.27% when compared to its closing share price of $7.52 seven days ago. Relative to today's opening stock price, the AFI stock price is unchanged.
A company that is still growing rapidly usually won't pay dividends because it wants to invest as much as possible into further growth. Mature firms that believe they can increase value by reinvesting their earnings will choose not to pay dividends.
So how much allowance should you give? Levine recommends 50 cents to a dollar for every year of age, on a weekly basis. For example, a 10 year old would receive $5 to $10 per week.
- Joint Brokerage Account.
- 529 Plans.
- Custodial Accounts (UTMA vs UGMA)
- Custodial IRAs.
A good dividend yield is high enough to meet your current income needs. But low enough to suggest a company's dividend is not at risk. Dividend yields that meet these requirements will typically fall between 2% and 5%. Since a stock with a yield of less than 2% may not provide the investor with enough current income.
In general, dividend yields of 2% to 4% are considered strong, and anything above 4% can be a great buy—but also a risky one.
A 6% annual return is considered pretty good by today's investing standards and typically you have to reach into some riskier places to try and achieve that kind of return year after year after year.
AFL pays a dividend of $1.60 per share. AFL's annual dividend yield is 2.19%. Aflac's dividend is lower than the US industry average of 2.31%, and it is lower than the US market average of 3.79%.
Earnings announcement* for AFL: Feb 1, 2023
According to Zacks Investment Research, based on 7 analysts' forecasts, the consensus EPS forecast for the quarter is $1.21. The reported EPS for the same quarter last year was $1.28.
Which shares are worth buying now?
- Add Gujarat Gas, target price Rs 542: HDFC Securities 14 Feb 2023, 11:30.
- Hold Tech Mahindra, target price Rs 971: ICICI Securities 14 Feb 2023, 11:24.
- Hold Wipro, target price Rs 410: ICICI Securities 14 Feb 2023, 11:15.
- Hold HCL Technologies, target price Rs 1144: ICICI Securities 14 Feb 2023, 11:07.
Pearson PLC (NYSE:PSO)
The 11 analysts offering 12-month price forecasts for Pearson PLC have a median target of 12.28, with a high estimate of 14.98 and a low estimate of 10.96. The median estimate represents a +15.14% increase from the last price of 10.67.
Pearson shares jump over 5% in response to raised earnings guidance. Shares in education group Pearson (PSON) jumped 5.7% to 668p after the firm upgraded its full year annual profits guidance.
Edward Pearson and his two brothers. ST PAUL, Minn. — Minnesota-based Pearson's Candy Company, the creator of the iconic Salted Nut Roll, has been sold. Spell Capital, which purchased Pearson's back in 2018, confirmed that the candy company was sold to California-based Annabelle Candy Company.
The top shareholders of Visa are Rajat Taneja, Alfred F. Kelly, Vasant M. Prabhu, Vanguard Group Inc., BlackRock Inc., and T. Rowe Price Associates Inc.
AFIC invests in 60 to 80 companies across a range of industries, that are selected for their ability to perform through economic cycles and generate returns over the long term.
That means that AFIC shares are decisively trading at a premium to their underlying NTA value right now. Specifically, that premium is worth around 11.84%. So no discount today. In fact, the last time AFIC shares were trading below their NTA value was back in 2019.
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- 10-year return: 24.00%
- Assets under management: $1.11B.
- Expense ratio: 0.35%
- As of date: November 29, 2022.
|VGT||Vanguard Information Technology ETF||130.57%|
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What is the least risky Vanguard fund?
If you're looking for stability, Vanguard Global Minimum Volatility Fund delivers. VMVFX is considered low-risk compared to its Morningstar category (global large-stock blend funds), and its beta of 0.7 implies it's 30% less volatile than the category benchmark.
Vanguard S&P 500 ETF (VOO)
Among the largest holdings in the fund are well-known names like Apple Inc. (AAPL), Microsoft Corp. (MSFT), Alphabet Inc.
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However, there are disadvantages of ETFs. They come with fees, can stray from the value of their underlying asset, and (like any investment) come with risks. So it's important for any investor to understand the downside of ETFs.
Why ETFs Are The Best Choice For Your Retirement Investments. You know I am a big believer that a Roth Individual Retirement Account (IRA) is the best way to save for retirement. And for my money, I think Exchange Traded Funds (ETFs) are an ideal way to invest the money in your IRA.
Invesco S&P 500 Low Volatility ETF (SPLV)
Investors looking to reduce the risk of their equity holdings can consider low-volatility ETFs like SPLV. This ETF sorts the stocks in the S&P 500 by their realized 12-month volatility. Once sorted, SPLV selects the least volatile 100 stocks.
1) Motilal Oswal NASDAQ 100 ETF
This ETF is the best ETF to invest in India.
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Vanguard's index funds are among the top choices for long-term investors. They've attracted such a large amount of assets that Vanguard has become the largest mutual fund company in the world. Vanguard index funds make smart choices for long-term investing because index funds are passively managed .
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If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.
Fastest growing Vanguard funds worldwide in January 2023, by one year return. The fastest growing exchange traded fund (ETF) managed by U.S. asset management company Vanguard is the Vanguard Energy Index Fund. Over the year to January 16, 2023, the ETF generated an annual return of 44.19 percent.
Vanguard Total Stock Market Index Fund (VTSAX)
It's very hard to beat the low cost and broad equity diversification offered by VTSAX, which is also a top pick on our list of the best total stock market index funds.
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