PL8 - Plato Income Maximiser

[System]

Plato Income Maximiser Limited has been established to provide investors with the opportunity to benefit from an actively managed well-diversified Australian listed equities portfolio that aims to generate both fully franked income and a total return in excess of the S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax Exempt).

It is anticipated that PL8 will list on the ASX during May 2017.

http://www.plato.com.au

 

[Dona Ferentes]

PL8 has been around for 4 years, and market cap is over $500 million. As a LIC, it takes a slightly different approach to investing, aiming to use proprietary software to enhance dividends (by harvesting the dividend cycle and avoiding nasties with what they term dividend cut modelling ).

The website doesn't let retail in to look under the bonnet. Sophs and planners only. MER is 0.80% and the yield since inception has been running around 7%pa (though that is bulked up including franking). The LIC is trading above NTA

The MD has produced a paper, found at https://www.firstlinks.com.au/five-rules-lics-genuine-raison-detre
LICs need a genuine raison d'etre

 

[Dona Ferentes]

PL8 has launched a placement to wholesale investors to raise up to A$71.3 million. (15% of capital). Shortly after the closing of the Placement, the Company will undertake a Share Purchase Plan (SPP), open to all eligible PL8 shareholders at the record date (02 November 2021). The SPP is targeting to raise a maximum of A$50 million, while maintaining the flexibility to accept applications in excess of this amount.

Both will be at a price of A$1.11 per New Share ..... based on the last reported pre- tax net tangible assets per share (NTA) and which represents a 13.6% discount to the closing share price on 02 November 2021 and a 14.2% discount to the volume weighted average price for the five trading days up until 02 November 2021.

... PL8 remains the only LIC paying fully franked monthly dividends
... Opportunity to buy PL8 shares at NTA, a meaningful discount to recent prices

 

[Iggy_Pop]

Another SPP but no placement to wholesale investors this time. I am going for the SPP again, seems a good company and handy in retirement to have the monthly dividends. Matches very closely in performance to VHY which is anther holding I have recently increased. They had an update today and the company has 14 moths of dividends in reserve, with material and energy shares contributing towards the dividend pool. Sold out of WAM as they have been a bit disappointing to fund the SPP.

Iggy

 

[divs4ever]

Another SPP but no placement to wholesale investors this time. I am going for the SPP again, seems a good company and handy in retirement to have the monthly dividends. Matches very closely in performance to VHY which is anther holding I have recently increased. They had an update today and the company has 14 moths of dividends in reserve, with material and energy shares contributing towards the dividend pool. Sold out of WAM as they have been a bit disappointing to fund the SPP.

Iggy

i could never warm up to WAM ( i went for WAX instead in September 2011 @ 70 cents )

yes have some PL8 but try to add sub $1 ( i just have to be very patient )

good luck

 

[divs4ever]

another of my picks for the 2024 full year competition

PL8 pays monthly divs ( and fully franked )

this one steers more to the big end of town , and often has SPPs

i bought for the steady trickle of income ( and try to buy under $1 )

because it pays monthly the investors might find this attractive , but some 'high yield ' ETFs are quite competitive in this space

a few extra bucks in the bank account at the end of every month ( but there is no guarantee of that if the market turns NASTY )

 

[Dona Ferentes]

PL8 is the original Dividend Harvest opportunity, and has been around for > 5 years . This is a LIC, and now it seems most ETF providers have launched a product trying to emulate it.

There are pluses and minuses for PL8, and it doesn't suit everyone. Enhanced yield of more than 7 per cent implies foregone growth opportunities, as the portfolio is actively managed for distributions. The LIC structure can help with franking, running at 100% while ETFs have a lower partial franking, as a rule.

3 year SP vs index (ignores dividends)

SPP of 23 November 2023, the Issue Price for the SPP has been determined to be A$1.04 per New Share. This Issue Price is the lower of :
• A$1.04, being the pre-tax net tangible asset of A$1.016 per fully paid ordinary share in PL8 plus the franking credit balance per Share of A$0.024, both on 20 November 2023; and
• A$1.055, being the pre-tax NTA (A$1.031) on the day the SPP closed, being Monday, 11 December 2023 plus the franking credit balance per Share of A$0.024 on 20 November 2023.

Results of the SPP
The Company is pleased to announce that it has accepted valid applications for a total of 116,773,896 New Shares, to raise approximately $121.4 million pursuant to the SPP. As a result, the net assets of the Company will stand at approximately $772.91 million after the additional capital raised under the SPP, making the Company one of the largest listed investment companies on the ASX. The New Shares commenced trading on Friday, 15 December 2023.
......

.
Clearly the S/P dropped on the news of more capital. Trading jumped. But what happened was a removal of the NTA premium.

Last week's NTA is $1.06 so it appears the premium has returned, with shares trading at 1.19

 

[divs4ever]

PL8 is the original Dividend Harvest opportunity, and has been around for > 5 years . This is a LIC, and now it seems most ETF providers have launched a product trying to emulate it.

There are pluses and minuses for PL8, and it doesn't suit everyone. Enhanced yield of more than 7 per cent implies foregone growth opportunities, as the portfolio is actively managed for distributions. The LIC structure can help with franking, running at 100% while ETFs have a lower partial franking, as a rule.

3 year SP vs index (ignores dividends)
View attachment 168449


SPP of 23 November 2023, the Issue Price for the SPP has been determined to be A$1.04 per New Share. This Issue Price is the lower of :
• A$1.04, being the pre-tax net tangible asset of A$1.016 per fully paid ordinary share in PL8 plus the franking credit balance per Share of A$0.024, both on 20 November 2023; and
• A$1.055, being the pre-tax NTA (A$1.031) on the day the SPP closed, being Monday, 11 December 2023 plus the franking credit balance per Share of A$0.024 on 20 November 2023.

Results of the SPP
The Company is pleased to announce that it has accepted valid applications for a total of 116,773,896 New Shares, to raise approximately $121.4 million pursuant to the SPP. As a result, the net assets of the Company will stand at approximately $772.91 million after the additional capital raised under the SPP, making the Company one of the largest listed investment companies on the ASX. The New Shares commenced trading on Friday, 15 December 2023.
......
View attachment 168448
.
Clearly the S/P dropped on the news of more capital. Trading jumped. But what happened was a removal of the NTA premium.

Last week's NTA is $1.06 so it appears the premium has returned, with shares trading at 1.19

well i was trying to accumulate these under $1 , that seemed fair value to me

but of course PL8 is just one of several LICs i hold i look for capital growth in other investment companies like WES , SOL and SVW

most of the LICs are selected for a fairly regular income stream ( before they were taken over WIC and OZG weren't bad for capital growth and some divs )

 

[divs4ever]

Plato Income Maximiser (ASX: PL8) announces monthly dividends for March 2024 quarter of $0.0055 per share

The Board of Plato Income Maximiser Limited (ASX: PL8) has resolved to pay three fully-franked dividends of $0.0055 per share payable in January, February and March 2024.
This continues the level of dividends paid in the December 2023 quarter.
Dr Don Hamson, Director of PL8 and Managing Director of Plato Investment Management Limited (the manager of PL8), said: “High interest rates and high but falling inflation have increased uncertainty somewhat, but we expect to receive solid dividends from a diversified portfolio of Australian companies in 2024.
One of the benefits of a closed-end listed investment company focused on income, such as PL8, is the ability to manage capital amidst uncertainty so as to provide regular dividend distributions over time.
In the ongoing environment of high interest rates and inflation as well as conflicts in Europe and the Middle East, liquidity and diversification are very important.
By design, PL8’s underlying portfolio is well diversified and very liquid.
Our investment process is well positioned to ride out the current volatile period whilst capturing dividends from Australian companies.”

The announcement of the dividends is in line with the Board’s stated policy to pay regular monthly dividends from available profits, provided it has sufficient reserves and it is permitted by law and within prudent business practices to do so.
Details of each dividend are as follows:
January February March Amount: $0.0055 per share $0.0055 per share $0.0055 per share

Ex – Dividend Date: 18 January 2024 14 February 2024 14 March 2024
Dividend Record Date: 19 January 2024 15 February 2024 15 March 2024
Dividend Payment Date: 31 January 2024 29 February 2024 28 March 2024 - 2 - At 31 December 2023, the value of the Company’s franking account was $17.7m ($0.024 per share).
This is equivalent to $0.055 (5.5 cents) per share in fully-franked dividends at the Company tax rate of 30% and the Company presently maintains sufficient profit reserves for this value of dividends.
The Board will re-assess economic conditions in three months’ time when considering the monthly dividends for the June 2024 quarter.

This announcement was authorised for release by the Board of Directors.

i hold PL8

this LIC does not have a DRP , but i sometimes wonder if i would participate if it did have one

 

[divs4ever]

Plato Income Maximiser (PL8) PL8 provides exposure to a well diversified portfolio of Australian companies that aims to deliver regular income, as well as capital growth over the long-term, for predominantly pension-phase and SMSF investors.
The Investment Manager achieves this through a multi-pronged investment process that focuses on:
(1) value;
(2) business momentum;
(3) quality;
(4) dividend and dividend run up; and
(5) dividend trap avoidance.
The recent Share Purchase Plan has provided a rare catalyst and unwound the embedded premium to NTA for prospective shareholders.
We calculate this as an indicative +9.4% based on an NTA of $1.02 p/s (ex-dividend) which compares to the preceding 6-month average of +20.0%.
The trailing 12-month net and gross dividend yield is 5.9% and 8.5% respectively, based on a purchase price of $1.11 per share.

by
Hayden Nicholson
ETF/LIC Specialist

i hold PL8

bought principally as a prelude to entering my 'pension phase '

 

[divs4ever]

@debtfree


PERFORMANCE AND COMPANY UPDATE

As at 31 January 2024, the Company’s investments delivered a total return of 9.7% p.a.1 (after fees) and distributed a yield of 7.6% p.a. (incl. franking) since inception2 compared to the S&P/ASX 200

Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) (‘Benchmark’) return of 9.6% p.a.1 and a yield of 5.3% p.a.1 1 Including franking credits.

2 Inception date 28 April 2017.

MONTHLY DIVIDENDS During the month of January, the Board of Plato Income Maximiser Limited (ASX: PL8) resolved to pay three fully-franked dividends of $0.0055 per share payable in January, February and March 2024, which is a continuation of the level of dividends paid during the December 2023 quarter.


The largest positive contributors to the Company’s performance during the month were overweight positions in Medibank Private and Whitehaven Coal as well as underweight positions in Newmont, Arcadium Lithium and Domino’s.
However, overweight positions in Mineral Resources, Evolution Mining and Independence Group as well as underweight positions in Aristocrat Leisure and Resmed detracted from relative performance.

The Company remains actively positioned to seek superior income than the benchmark.

Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

i hold PL8

( the key here is to get your average share price under $1 ( which i was lucky enough to do )

 

[divs4ever]

@debtfree

nothing much special to report a small share price rise ( so far )

looks like it is just floating on a rising tide

depending on when ( and if ) the CSR ( i hold ) take-over completes , that might create an extra blip in earnings

maybe SUN will pay a special ( or higher ) div. now the banking arm sale has been approved by one of the regulators

but 8 months to go in the year/comp. best of luck predicting what happens next

 

[divs4ever]

@debtfree

Plato Income Maximiser (ASX: PL8) announces monthly dividends for June 2024 quarter of $0.0055 per share

The Board of Plato Income Maximiser Limited (ASX: PL8) has resolved to pay three fully-franked dividends of $0.0055 per share payable in April, May and June 2024.

This continues the level of dividends paid in the March 2024 quarter.

Dr Don Hamson, Director of PL8 and Managing Director of Plato Investment Management Limited (the manager of PL8), said: “Markets have rallied to all time highs on expectations that the next moves in interest rates will be down, however, the timing of those declines is still quite uncertain.

The Australian economy is slowing, but we expect to receive solid dividends from a diversified portfolio of Australian companies in 2024. One of the benefits of a closed-end listed investment company focused on income, such as PL8, is the ability to manage capital amidst uncertainty so as to provide regular dividend distributions over time.
In the ongoing environment of high interest rates as well as conflicts in Europe and the Middle East, liquidity and diversification are very important.

By design, PL8’s underlying portfolio is well diversified and very liquid. PL8’s investment portforlio is well positioned to capture dividends from Australian companies.

” The announcement of the dividends is in line with the Board’s stated policy to pay regular monthly dividends from available profits, provided it has sufficient reserves and it is permitted by law and within prudent business practices to do so.

Details of each dividend are as follows:

Amount: Ex – Dividend Date: Dividend Record Date: Dividend Payment Date:

April $0.0055 per share 18 April 2024 19 April 2024 30 April 2024

May $0.0055 per share 16 May 2024 17 May 2024 31 May 2024

June $0.0055 per share 13 June 2024 14 June 2024 28 June 2024 -




2 - At 31 March 2024, the value of the Company’s franking account was $17.0m ($0.023 per share).

This is equivalent to $0.053 (5.3 cents) per share in fully-franked dividends at the Company tax rate of 30% and the Company presently maintains sufficient profit reserves for this value of dividends.

The Board will re-assess economic conditions in three months’ time when considering the monthly dividends for the September 2024 quarter.

This announcement was authorised for release by the Board of Directors.

i hold PL8

 

[divs4ever]

@debtfree

Weekly NTA Update

Please find below the estimated Net Tangible Asset backing per share for Plato Income Maximiser Limited (ASX: PL8) as at 17 May 2024:

NET TANGIBLE ASSETS (NTA) PER SHARE1

Pre-tax NTA2 $1.095 Post-tax NTA3 $1.103

The NTA values shown above are after the monthly dividend of $0.0055 per share payable on 31 May 2024.
  The ex-date of the dividend was 16 May 2024.
These figures are unaudited and approximate only.
1 NTA calculations exclude Deferred Tax Assets relating to capitalised cost deductions and carried forward tax losses of $0.005 per share.
The Franking Account Balance (not reflected in NTA) is $0.018 per share.
2 Pre-tax NTA includes tax on realised gains/losses and other earnings, but excludes any provision for tax on unrealised gains/losses.
3 Post-tax NTA includes tax on realised and unrealised gains/losses and other earnings.

Yours faithfully Calvin Kwok Company Secretary

i hold PL8 ( @ an av. SP of 98.6 cents a share )

slightly up( 1 cent ) at the time of posting today

higher fees ( 0.8% ) for sure , but maintains the flexibility to be active if opportunities arrive

some will probably prefer a wholesale passive index ETF ( some of those pay monthly as well )

not that many LICs that regularly trade at a premium to NTA

 

[divs4ever]

@debtfree

one of my entries in the yearly comp.

not a lot happened this month

Dear Sir/Madam

Weekly NTA Update

Please find below the estimated Net Tangible Asset backing per share for Plato Income Maximiser Limited(ASX: PL8) as at 14 June 2024:

NET TANGIBLE ASSETS (NTA) PER SHARE1
Pre-tax NTA2 $1.080
Post-tax NTA3 $1.091

The NTA values shown above are after the monthly dividend of $0.0055 per share payable on 28 June 2024. 
The ex-date of the dividend was 13 June 2024.These figures are unaudited and approximate only.
1 NTA calculations exclude Deferred Tax Assets relating to capitalised cost deductions and carried forward tax losses of $0.005 per share.
The Franking Account Balance (not reflected in NTA) is $0.016 per share
.2 Pre-tax NTA includes tax on realised gains/losses and other earnings, but excludes any provision for tax on unrealised gains/losses.
3 Post-tax NTA includes tax on realised and unrealised gains/losses and other earnings.

Yours faithfully Calvin Kwok Company Secretary

is currently trading at a premium to NTA despite being ex-div.

i bought when it was trading at a discount ( to NTA )

i bought this because it tries very hard to pay monthly divs ( and is currently up 22% for me )

 

[divs4ever]

@debtfree

Plato Income Maximiser (ASX: PL8) announces monthly dividends for September 2024 quarter of$0.0055 per share


The Board of Plato Income Maximiser Limited (ASX: PL8) has resolved to pay three fully-franked dividends of $0.0055 per share payable in July, August and September 2024.

This continues the level of dividends paid in the June 2024 quarter.

Dr Don Hamson, Director of PL8 and Managing Director of Plato Investment Management Limited (the manager of PL8),said:“Markets have rallied to all time highs on expectations that the next moves in interest rates will be down, however, thetiming of those declines is still quite uncertain.

This has led to a fall in the historical yield of the Australian market.

TheAustralian economy is slowing, but we expect to receive solid dividends from a diversified portfolio of Australian companies in 2024.
One of the benefits of a closed-end listed investment company focused on income, such as PL8, is the ability to manage capital amidst uncertainty so as to provide regular dividend distributions over time.

In the ongoing environment of high interest rates as well as conflicts in Europe and the Middle East, liquidity and diversification are very important.

By design, PL8’s underlying portfolio is well diversified and very liquid. PL8’s investment portforlio is well positioned to capture dividends from Australian companies.

”The announcement of the dividends is in line with the Board’s stated policy to pay regular monthly dividends from available profits, provided it has sufficient reserves and it is permitted by law and within prudent business practices to do so.

Details of each dividend are as follows:

July $0.0055 per share
August $0.0055 per share
September Amount: $0.0055 per share
Ex – Dividend Date:
19 July 2024
15 August 2024
13 September 2024
Dividend Record Date:
22 July 2024
16 August 2024
16 September 2024
Dividend Payment Date:
31 July 2024
30 August 2024
30 September 2024-

2 -

At 30 June 2024, the value of the Company’s franking account was $13.3m ($0.018 per share). This is equivalent to$0.041 (4.1 cents) per share in fully-franked dividends at the Company tax rate of 30% and the Company presently maintains sufficient profit reserves for this value of dividends.

The Board will re-assess economic conditions in three months’ time when considering the monthly dividends for the December 2024 quarter.

This announcement was authorised for release by the Board of Directors.

i hold PL8

please note this a one small component in a larger strategy

 

[divs4ever]

@debtfree

hmmm i didn't see much in useful news from PL8 this month

share price-wise it is lagging the XJO ( total return )by about 13% over the last year

unlike many LICs is trading at a premium to NTA ( currently )

a curious person might read their latest presentation , which includes some morsels of information ( on a few areas of the economy )

this LIC is a 'div. smoother ' one might find good entry points ( compared to the forecast divs ) which it does up to 3 months at a time

i hold PL8

( my average SP is a little under 99 cents so 6.6 cents a year + franking isn't so bad is an income stream , paid monthly )

 

[Bellcose]

I acknowledge I am "old school" when it comes to LICs but it really bugs me LICs such as this one create a dividend by increasing their accumulated losses.

 

[divs4ever]

@debtfree

well despite @Bellcose last post PL8 set a new 12 month high on Friday ( despite being ex-div. )

reached $1.25 before finishing at $1.235

MONTHLY DIVIDENDS
During the month of July, the Board of Plato Income Maximiser Limited (ASX: PL8) resolved to pay three fully-franked dividends of $0.0055 per share payable in July,August and September 2024, which is a continuation of the level of dividends paid during the June 2024 quarter.

the fees are .08% which may seem high for a passive index fund investor , but not extreme in LIC world

Please find below the estimated Net Tangible Asset backing per share for Plato Income Maximiser Limited (ASX: PL8) as at 20 September 2024:

NET TANGIBLE ASSETS (NTA) PER SHARE1
Pre-tax NTA2 $1.138
Post-tax NTA3 $1.128

The NTA values shown above are after the monthly dividend of $0.0055 per share payable on 30 September 2024. 
The ex-date of the dividend was 13 September 2024.

These figures are unaudited and approximate only

unlike many LICs this trades at a premium to NTA



i hold PL8 ( but i was buying when they were under $1 )

 

[divs4ever]

@debtfree

Plato Income Maximiser (ASX: PL8) announces monthly dividends for December 2024 quarter of$0.0055 per share

The Board of Plato Income Maximiser Limited (ASX: PL8) has resolved to pay three fully-franked dividends of$0.0055 per share payable in October, November and December 2024.

This continues the level of dividends paid in the September 2024 quarter.Dr Don Hamson, Director of PL8 and Managing Director of Plato Investment Management Limited (the manager of PL8), said:“Markets have rallied to all time highs on expectations that the next moves in interest rates will be down, however,the timing of those declines is still quite uncertain.

This has led to a fall in the historical yield of the Australian market.

The Australian economy is slowing, but we expect to continue to receive solid dividends from a diversified portfolio of Australian companies in FY25.
One of the benefits of a closed-end listed investment company focused on income, such as PL8, is the ability to manage capital amidst uncertainty so as to provide regular dividend distributions over time.In the ongoing environment of high interest rates as well as conflicts in Europe and the Middle East, liquidity and diversification are very important.
By design, PL8’s underlying portfolio is well diversified and very liquid. PL8’s investment portfolio is well positioned to capture dividends from Australian companies.

”The announcement of the dividends is in line with the Board’s stated policy to pay regular monthly dividends from available profits, provided it has sufficient reserves and it is permitted by law and within prudent business practices to do so.

Details of each dividend are as follows:
October November December
Amount: $0.0055 per share $0.0055 per share $0.0055 per share
Ex – Dividend Date: 21 October 2024 14 November 2024 16 December 2024
Dividend Record Date: 22 October 2024 15 November 2024 17 December 2024
Dividend Payment Date: 31 October 2024 29 November 2024 31 December 2024-
2 -At 30 September 2024, the value of the Company’s franking account was $15.1m ($0.020 per share).
This is equivalent to $0.047 (4.7 cents) per share in fully-franked dividends at the Company tax rate of 30% and the Company presently maintains sufficient profit reserves for this value of dividends.
The Board will re-assess economic conditions in three months’ time when considering the monthly dividends for the March 2025 quarter.

This announcement was authorised for release by the Board of Directors.

i hold PL8 ( but i was buying when they were under $1 )