As a long term stock market investor (for retirement and also early retirement purposes) I was very keen to see which companies were able to continue, thrive and pivot and also provide undisturbed dividends right through 2020 and the beginning of this year. The list is rather small in comparison to those that did not.
Here is a small selection of companies that our family invest in that maintained (or even grew) their dividends right through 2020 paid from their wisely put-aside cash reserves and have bounced back without fanfare this year. I appreciate these companies’ foresight, unassuming capability and steadfastness.
To visit each company’s website, just click on each highlighted the heading
AFIC is a Licensed Investment Company that has been operating steadily since 1928 and pays half-yearly fully franked dividends.
AFIC invest in many different Australian and New Zealand companies over the long term and aim to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and growth in capital invested. Recently, AFIC has also begun investing a small amount in international companies in a nursery-style portfolio environment as a move to future-proof and diversify its returns to investors.
AUI is a Licensed Investment Company that has been operating in Australia since 1953 and was founded by the late Sir Ian Potter and the Ian Potter Foundation Ltd is today the company’s largest shareholder.
AUI specializes in Australian listed equities. The company’s objective is to take a medium to long view to investing with the potential to provide income from dividends and capital appreciation over the long term. AUI pays half-yearly fully franked dividends.
You can tell from their website that they do not waste money on pretty niceties!
Whitefield is an Australian Licensed Investment Company that was founded in 1923.
Whitefield invests in non-resource (industrial) Australian companies and pays half-yearly fully franked dividends. Dividends are paid in June and December which provides investors with a different pay cycle to most dividend payment schedules – very useful for spreading out income across the year if held in conjunction with other holdings.
Brickworks is an Australian conglomerate. BKW's principal activity is the manufacturing of a range of building products throughout Australia and North America. BKW is engaged in development and investment activities to realise surplus manufacturing property, and participate in diversified investments as an equity holder.
Brickworks has been operating since 1930 and has 45 manufacturing plants, 17 different product brands and operates in Australia and also North America. BKW also has significant holdings in Washington H. Soul Pattinson (ASX:SOL) another excellent Australian investment company operating since 1903. BKW pays half-yearly fully franked dividends.
Charter Hall Long WALE REIT is an Australian Real Estate Investment Trust (REIT) investing in high quality commercial and industrial real estate assets that are predominantly leased to corporate and government tenants on long term leases.
CLW has 459 properties with a portfolio valuation of $4.5billion and 97% occupancy with an average lease length of 14 years.
CLW pays half yearly dividends.
For those of you in Australia that held these companies during last year and were reliant on their dividends for retirement or semi-retirement funding, you would not have even noticed any change to your retirement income despite the 'horrors' occurring in the stock market.
Now, it’s important that I clearly state that I am not a financial adviser and that today’s post is not a recommendation or official financial advice. I’m simply sharing part of what we do in our family investments and how things looked for us during 2020. Always do your own research and seek trustworthy advice if required.
Take care and stay nice