WAM Research Limited (ASX:WAX) has reported an operating profit before tax of $28.9 million for the year to 30 June 2018, a 42.2% increase on the previous year.
Chairman Geoff Wilson said he was pleased that during the year the investment portfolio increased 14.5 per cent, outperforming the S&P/ASX All Ordinaries Accumulation Index, which rose 13.7 per cent.
The company has declared a full year fully franked dividend of 9.5 cents per share, an increase of 5.6 per cent on the previous year.
Despite the good investing performance, the WAM Research share price has been flat over the past 12 months. The LIC trades at a significant 27 per cent premium to its pre tax net tangible assets.
Driving the premium higher is investors chasing fully franked dividends, almost regardless of the prospect of capital appreciation. With WAM Research shares at $1.63, the company trades on a fully franked dividend yield of 5.8 per cent, or 8.3 per cent when grossed up for franking credits.
The LIC focuses on small to mid-cap ASX shares.
As at June 30th 2018, here are the WAM Research top 20 holdings (click to enlarge).