3.3% grossed up dividend yield

Djerriwarrh Investments Limited is paying an 8.75c/share fully franked dividend with an ex dividend date of Wednesday 29 January. This is one of two dividends paid each year

At $3.60 share this equates to a grossed up dividend yield of 3.3% on this dividend.

I anticipate share price appreciation throughout next week (20 January to 24 January) and on Tuesday 28 January (the last cum dividend date). Am looking for it to trade at or close to $3.70 within this time period.The shares it invests in would likely have increased in value since 31 December 2019 in line with the 6% increase in the All ords index so far in January this year.

"Djerriwarrh invests in 50 to 70 companies across a range of industries, that are selected for their ability to perform through economic cycles, pay growing dividends and where option markets are available on these companies to generate additional income."

"The Company pays out a high percentage of profits as fully franked dividends. Dividends are able to be sourced from current year profits, retained profits and profits from the sale of investments.

Djerriwarrh has been in operation since 22 December 1989 and its shares were listed on the ASX in June 1995."

Shareholdings as at 31 December 2019 comprised:-

Total Value
$ million
1 * CBA Commonwealth Bank of Australia 70.3 8.8%
2 * BHP BHP 53.7 6.7%
3 * WBC Westpac Banking Corporation 52.6 6.6%
4 * NAB National Australia Bank 38.7 4.8%
5 * MQG Macquarie Group 38.0 4.7%
6 * ANZ Australia and New Zealand Banking Group 37.9 4.7%
7 * CSL CSL 35.5 4.4%
8 * TCL Transurban Group . 31.9 4.0%
9 * WES Wesfarmers 27.0 3.4%
10 * TLS Telstra Corporation 22.6 2.8%
11 * WPL Woodside Petroleum 22.4 2.8%
12 * SYD Sydney Airport 20.4 2.6%
13 * BXB Brambles 17.8 2.2%
14 * ALX Atlas Arteria 17.6 2.2%
15 * GMG Goodman Group 17.6 2.2%
16 * AMC Amcor 16.9 2.1%
17 * OSH Oil Search 16.3 2.0%
18 * RHC Ramsay Health Care 15.9 2.0%
19 * WOW Woolworths Group 15.0 1.9%
20 * RIO Rio Tinto 13.3 1.7%
581.3
As % of Total Portfolio Value 72.6%
(excludes Cash)
* Indicates that options were outstanding against part of the holding