Purchase – WAM Research Ltd [ASX:WAX]

By | March 18, 2017

First Purchase In March.

Well I have finally made my first purchase in March and hopefully it won’t be the last purchase. I would definitely like to make another purchase sometime in March, depending on how much I can save, this will most likely be in the later section of March. Let’s just wait and see what happens, hopefully no nasty surprises on the bills side of thing.

WAM Research are a Listed Investment Company (LIC) that invest in up and coming stocks. Without saying too much, take a look at the following diagrams and you will see why I chose them as a nice income purchase. WAM have an excellent growth rate, increasing assets and a nice dividend payout while still maintaining enough money to make purchases in the future. They boast a massive 19.6% increase p.a since first listing in July 2010.

wam0

Why I chose WAM Research.

wam1

If you invested 10k into WAM Research when they first started in early  2010, then you would almost have 40k, compared to the Australian All Ords which has net only 18k. This is a huge outperformance and doesn’t seem to be slowing down anytime soon.

wam2

As you can see WAM Research has increased its dividend over the years except for the 2007-2009 period where the worldwide market struggled. Since then, there has been 8 years of dividend growth which shall continue to grow and show resilience when things are tough. This is the type of dividend you want to keep, even when the markets were bad it didn’t take long for them to bounce back and start to be a real winner again.

 

wam3

The share price has also continued to rise along with the dividends over time. This has more than doubled over a 5 year period, which has beaten the market. This is a long term hold which can keep on producing dividends and even a DRIP at a 2.5% discount, can’t go wrong with that. Looks like I will be holding this one for many, many years which should help increase my net worth with time. Looking forward to seeing the performance on this stock over the next ten years.

Thanks for taking a look.

Check out my Portfolio. This increases my forward dividend income to $404.93

12 thoughts on “Purchase – WAM Research Ltd [ASX:WAX]

  1. DivHut

    Sure looks like WAX knows how to invest in up and coming stocks pretty well based on what you have shown us. Of course, I’m no familiar with this name at all as with most of the buys I read about from “down under.” That’s cool. I appreciate reading and learning about the many solid companies that exist all over the world. Thanks for sharing.

    Reply
    1. Buy - Hold - Long Post author

      Any time DH, Australia is doing well at the moment. You definitely would get a great deal if you invested USD into Australian shares, just a hint :P. Cheers

      Reply
  2. J T

    I’ve held WAX and WAM for a while and love the companies. They keep a large % of their assets in cash, have no debt and have soundly outperformed the market each since their existence!

    Reply
  3. Dividend Daze

    Nice buy. I don’t know too much about Australian stocks but seems like this one is a winner proven by its historical returns. Hope it continues to produce for you.

    Reply

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