J#16: My third free recommendation, “Navigating the Navigator to a 12.0% Yield” is now published.
Navigator Global Investment (ASX: NGI) is this month’s free recommendation. It’s in the asset management business.
As you will be aware if you read my earlier journals, the price of this recommendation rallied and we are no longer receiving a 20% dividend yield. Instead, at yesterday’s closing price, it yields a solid 12.0% and is still a great buy in today’s zero percent interest rate world.
Navigator has zero debt, a 5-year track record of paying over US 12 cents of dividends per share to shareholders and an executive team that has worked together for over 20 years and are in the process of obtaining shareholder and regulatory approval to triple their Assets Under Management (AUM) over the next 5 years through a proposed acquisition of funds held by a division of Neuberger Berman.
We are generally averse to investing in US companies as a 30% withholding tax rate applies to dividends paid to non US residents. This materially eats into your dividend (see Journal #13). This recommendation, however, offers us an opportunity to access the US market WITHOUT paying the 30% withholding tax rate.
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Until next time,
Good investing!
Peter