cho, page-114

"The 3 LICS are worth the hold..aui, dui and cho."



I dont know whether you have come across this before but with respect to the final 11 cent FF dividend paid by AUI in October 2006, 8.5 cents was in the form of a LIC Capital Gain FF dividend. Look out for those becuase unlike the waste of space LIC's (CAM, WAM, MMA and the like, the traditional LIC's are able to pay this kind of dividend due to their long-term buy-and-hold approach).


From AUI's Annual Report :

"8.5 cents per share of the fi nal dividend will be paid in the form of a Listed Investment Company capital gain dividend which will enable some shareholders to claim a tax deduction in their income tax return. Details will be set out on the dividend payment advice. The ability of the Company to pay LIC dividends is dependent on a number of factors including gains realised from time
to time on the long term investment portfolio. This year, realised capital gains arose principally from the takeover of our holding in WMC Resources Ltd."



And here is the ATO link which explains how LIC Capital Gains dividends work (bottom of the page) :

http://www.ato.gov.au/individuals/content.asp?doc=/content/43486.htm&page=13