Purchase(s) – FGX & WLE Stocks – New Purchases

New Purchases in August


Well, I was able to dispose of my holding in Air New Zealand. They have been a great stock to hold for the short term because I got in early and cheap. I bought shares in AIZ (Air New Zealand) at $1.67 which was well undervalued. I reduced my holding earlier in the year and sold off half of the stock to get some extra funds. Then in August they reached a new high for me and I sold the last part of my remaining shares at $3.29. That is a nice trade in less than a year, I was very happy with that. I have put a little aside for the CGT that I will have to pay on it but after all that I am still ahead and was able to buy one new position and add to another position.

Don’t get me wrong, I really liked AIZ but I feel they don’t fit my investing position I like to be in. Their yield was very high (risk) but it didn’t allow for any DRP (DRIP) and only paid out their dividend in cash. My second reason for selling was that the dividend didn’t have franking credits (company tax paid on dividends) which is a negative for me, meaning I am forced to pay the tax myself. Where as if a stock has a franking credit on it and it pays me a dividend I do not have to pay additional tax on my dividend payment because the company does that for me.


First Purchase (FGX):

I bought 1150 shares of Future Generation Investment Company (FGX) which are a LIC that allocate a section of portfolio to different investors to invest. This is quite different to other LIC’s because instead of just one investor company using your funds, there are many investors that invest because this is a charity LIC. Not only does this make you feel good on the inside for being in a charity stock, it also pays a dividend around the 3.90% which is a healthy boost to the forward dividend payments. \

Instead of paying the investment managers a commission or performance fee, all the investment managers work pro bono, rather the 1% p.a of fees goes towards charities for children at risk. Now that is definitely an investment I want to be in on. It also offers a DRP (DRIP) discount of c. 1% which means I can just pump my dividends back into this lovely stock and continue to build equity and forward dividend. Last year FGX donated a total of 3.8 million AUD to charities across Australia helping children at risk, I love it.

Second Purchase (WLE):

I bought 854 shares of WAM Leaders LIC. I have written about WLE before here. To keep it short, they buy and sell in Australia’s top 300 listed companies and so far have made some nice returns to shareholders. WAM have a nice record with investing in other stocks as they have quite a few LIC’s (WLE, WAM, WAX, WAA etc.) they definitely know what they are doing. These are a little more defensive style investment as they are investing in the top companies. WLE pay a dividend yield of around 2.70% at the moment and this will continue to increase as the LIC gets more traction like their other LIC’s that pay around the 4-6% mark. This is a long term hold for me as I will continue to DRIP feed these to increase capital over a long period of time.


What have you purchased lately?

10 thoughts on “Purchase(s) – FGX & WLE Stocks – New Purchases

  1. Never boring seeing which names you pick up. I’m not familiar with either name as both stocks you typically don’t see in long term DGI portfolios. Still, looks like you are picking up some nice yield and have the potential for some capital appreciation too. Thanks for sharing.

    1. Thanks DivHut. I like to try to get some out of the ordinary stocks which will either be high yielding or long term capital appreciation. It is a bit riskier game than choosing the blue chip stocks but it’s a risk I’m willing to make!

  2. Looks like you made some nice purchases BHL. Also, congrats on selling at a profit. Too many people sell at a loss because of wrong timing or life’s circumstances, or whatever. It’s good that you’re adding shares to your portfolio to experience compounding growth.

  3. Thanks for sharing. It is always interesting to visit sites from investors outside of the US. There are a lot of good dividend paying companies out there, especially in Australia! FGX seems really interesting.


    1. I really love the charity aspect they have included. Not entirely sure how the tax component would play a part of you’re outside Aus. Perhaps you get an added 30% and then you’re responsible for the tax. Cheers

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