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.
Why I chose WAM Research.
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.
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.
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