WAM Active Limited (ASX:WAA) is offering shareholders a Dividend Reinvestment Plan (DRP) for its upcoming fully franked 3.2 cent final dividend and fully franked 2.0 cent special dividend. The dividends follow a record FY26 in which the company's investment portfolio rose 75.5% before expenses, fees and taxes.

Latest developments

WAM Active reported that its investment portfolio increased 75.5% in FY26, before expenses, fees and taxes, outperforming the Bloomberg AusBond Bank Bill index by 71.6 percentage points and the S&P/ASX All Ordinaries Accumulation Index by 69.8 percentage points. Wilson Asset Management described it as a record result.

With its full-year results, the board declared a fully franked final dividend of 3.2 cents per share and a fully franked Special Dividend of 2.0 cents per share. Combined with the 3.2 cent Interim Dividend and a 1.0 cent special dividend paid earlier in the year, FY26 dividends total 9.4 cents per share. The company has also invited shareholders to presentations in October.

During FY26, the company raised $70.7 million through an oversubscribed two-for-three entitlement offer.

Key numbers

Three fully franked dividends were paid in the twelve months before the current declarations: a 3.0 cent final dividend late in 2025, followed by a 3.2 cent interim dividend and a 1.0 cent special dividend in mid-2026. The special dividends may not recur.

For FY26, the ordinary full-year dividend was 6.4 cents per share, with a further 3.0 cents per share paid or payable as special dividends, all fully franked.

About the company

WAM Active is a listed investment company managed by Wilson Asset Management. It listed on the ASX in January 2008. Its stated objectives are to deliver a regular income stream through fully franked dividends, provide a positive return with low volatility, after fees, over most periods of time, and preserve capital.

The company uses an active trading approach, seeking short-term Mispricing in Australian listed companies. Oscar Oberg is Lead Portfolio Manager. In FY26 the portfolio's key themes included critical minerals, electrification and grid infrastructure, precious metals and artificial intelligence, and cash peaked at 35.5% of the portfolio in February 2026.

How the DRP works

A DRP allows shareholders to receive new shares instead of cash dividends. WAM Active's DRP is available for both upcoming payments. The 3.2 cent final dividend and the 2.0 cent special dividend have separate ex-dividend, record, DRP election and payment dates, with both payments scheduled later in the year.

According to the company's FY26 results announcement, no discount applies to the DRP. The DRP price is the volume-weighted average price (VWAP) of WAM Active shares over the four trading days commencing on the ex-dividend date for each dividend. Participating shareholders are allotted the number of shares the Cash Dividend would purchase at that price, rounded down to the nearest whole number.

Why it matters for income investors

Fully franked dividends are central to WAM Active's stated objectives. The ordinary full-year dividend of 6.4 cents per share was supplemented by 3.0 cents of special dividends in FY26, bringing the total to 9.4 cents per share following the record portfolio result.

For shareholders who elect into the DRP, dividends are converted into additional shares without brokerage. Because the final and special dividends have separate dates, the DRP election arrangements for each payment are set out in the company's dividend documentation.

The franking credits attached to WAM Active's dividends reflect tax the company has paid on its profits. The value of those credits to an individual Shareholder depends on their tax position.

What comes next

The next milestones are the final and special dividend payments and the October shareholder presentations. Wilson Asset Management publishes monthly investment updates that include net Tangible Asset (NTA) figures for the company.

Any future dividends, including whether special dividends are repeated, will depend on portfolio performance, profits reserves and board decisions.

Risks and context

The FY26 dividend total includes special dividends, which may not recur. The 75.5% portfolio return in FY26 was exceptional, and an active trading strategy with exposure to themes such as critical minerals and precious metals can produce variable results. Weaker returns could reduce the profits available to pay fully franked dividends.

Listed investment company shares can trade at a premium or discount to NTA. The FY26 entitlement offer enlarged the share base, and new shares issued under the DRP dilute shareholders who do not participate. Reinvested dividends remain assessable income, and each DRP parcel sets a new cost base for Capital gains tax purposes.

Conclusion

WAM Active (ASX:WAA) has declared fully franked final and special dividends for FY26, with its DRP available for both payments at no discount. A record FY26 portfolio result underpins the payouts, while reliance on active trading returns and the one-off nature of special dividends are key considerations.

Key Insights

WAM Active (ASX:WAA) declared a fully franked 3.2 cent final dividend and a fully franked 2.0 cent special dividend, bringing FY26 dividends to 9.4 cents per share after a record 75.5% portfolio return before expenses, fees and taxes.

The DRP applies to both payments, with no discount and a price based on the four-trading-day VWAP from each ex-dividend date. New shares are allotted to participants, and future dividends, including any further specials, remain subject to portfolio performance, profits reserves and board decisions.