We're at the start of a new year, and my favourite way to welcome a new year is to buy some S&P/ASX All Ordinaries Index (ASX: XAO) shares. However, I'm a bit fan of those age-old wise words 'buy low, sell high'.
Since the All Ords index has gone on a bit of a tear in 2023 so far, it's certainly not as compelling to pick up new shares right now compared to even a few weeks ago.
However, I do know which All Ords share will be my next investment. It's Plato Income Maximiser Ltd (ASX: PL8):
About Plato Income Maximiser
Last updated 18-12-2024, 04:00:00pm AEDT
3 reasons why I want to buy this All Ords share
There are three reasons why I like this All Ords share and want to add it to my ASX portfolio.
The first is diversification. This listed investment company (LIC) holds a portfolio of dividend-paying shares within it.
On the latest update, these include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Woodside Energy Group Ltd (ASX: WDS) and Goodman Group (ASX: GMG). This gives me a lot of diversification right off the bat.
The second is this LIC's policy of paying monthly dividends. Most ASX shares pay out their dividends every six months, with a small number managing quarterly payments.
However, this LIC aims to give investors a paycheque every month. I like the idea of this regular dividend income, which I can reinvest into other shares sooner rather than later.
The third and most important reason is performance. I like any All Ordinaries share that has a solid history of outperforming the broader market. From its inception in 2017 to 30 November 2022, this fund has returned an average of 10% per annum, including dividend and franking returns.
That handily outperforms the benchmark S&P/ASX 200 Index (ASX: XJO) (also including dividends and franking) by 0.5% per annum, net of fees.
So with the Plato Income Maximiser Fund, I am getting a diversified, market-beating monthly dividend payer. That's more than enough for inclusion in my ASX share portfolio. Time now to find a good price to buy!
