Here’s the next ASX share I’m going to buy

When it comes to my personal share portfolio, I like to invest in a mix of individual ASX shares, international shares, and managed investments. That way, I can choose the companies that I want in my portfolio, while outsourcing some of the work to professional investors.

If my own share picks prove to be failures, at least I have some other investments, and expertise, to rely on.

Some of these managed investments are index funds. But others are actively managed.

One of the net shares I intend to buy falls into the latter camp.

When I look for actively managed investments, I like to analyse a number of factors. These include long-term investment performance, fees, and dividend potential.

The next ASX share I’m going to buy

The Plato Income Maximiser Ltd (ASX: PL8) hits all three, in my view.

The Plato Income Maximiser Fund is a listed investment company (LIC) that targets dividend income. Like all LICs, this company invests in a portfolio of shares on behalf of its shareholders.

Some of its most recent top holdings include dividend payers like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and QBE Insurance Group Ltd (ASX: QBE).

So let’s go through my three criteria.

Firstly, investment performance. The Plato Income Maximiser Fund has delivered a total return (including dividends and franking credits) of 9.2% per annum since its inception in 2017, net of fees. That’s well above the 7.6% per annum return of its ASX 200 benchmark. It’s also beaten the ASX 200 over the past one and three years:

In terms of dividends, this LIC pays out monthly, fully-franked dividend payments, which I find attractive. This lets me put my money to work sooner than a six-month payer. At the current share price, the Plato Income Maximiser Fund has a trailing dividend yield of 5.33%, which I think is very attractive.

Finally, let’s talk fees. The Plato Income Maximiser Fund charges an annual management fee of 0.8%. While that’s not as competitive as an index fund, I still think it’s worth paying for considering the outperformance this LIC has generated against the ASX 200.

So overall, I think the Plato Income Maximiser would make a great addition to my ASX share portfolio, and that’s why it will probably be the next ASX share that I buy.

The post Here’s the next ASX share I’m going to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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