Does MM have a favourite Investment Management group?

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Question asked 02/04/2022

Does MM have a favourite Investment Management group?

I currently have shares in Argo paying a dividend yield of 3.26%, I note that AFG are paying 6.92% and PTM are paying 9.82%. They all seem to be doing the same thing. Can you offer any information why any one is better than the others?

Answer

Hi Tony,

These are different sorts of businesses. Argo (ARG) is a listed investment company which passively holds a portfolio of stocks and passes through the dividends they collect on the portfolio. AFG is actually a mortgage aggregator that provides backend services for mortgage brokers. Platinum is a fund’s management business that has a bunch of funds investors can put money in. Platinum & ARG are similar however at the moment PTMS share price is deflated and they have a high dividend payout ratio which is why their yield is so high.

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Australian Finance Group (AFG)

LAST UPDATED 01/04/2022 15:55

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