Listed Investment Companies (LICs) are a popular vehicle for Australian investors seeking dividend income from the ASX. LICs pool investor funds to buy a diversified portfolio of shares, then pass on dividends to their own shareholders. However, as of June 2026, investors should verify current dividend yields and management fees, which can vary significantly between LICs.
Key LICs on the ASX include Australian Foundation Investment Company (AFI) and Argo Investments (ARG). AFI has a long history of paying consistent dividends, with a current yield around 4-5% as of mid-2026, though exact figures depend on market conditions. ARG similarly offers a diversified portfolio and has maintained dividends for decades.
Investors should note that LICs charge management fees, typically around 0.1-0.2% per annum for large, established LICs, but some smaller or specialty LICs may charge higher fees. Past performance is not a guarantee of future returns, and dividend payments can fluctuate based on the underlying portfolio's performance.
For those seeking income, LICs can provide a steady stream, but it's crucial to research each LIC's holdings, fee structure, and dividend history. As always, consult a financial advisor for personalized advice.
