Key Highlights

  • WAM Capital (ASX:WAM) has an Interim Dividend of $0.077 per share, with a stated annual Yield of 10.03% and 60% franking.
  • The company reported an Investment portfolio decline during July 2026, while NTA before tax fell from 122.20 cents to 119.50 cents per share.
  • Annualised interim dividends stand at 15.5 cents per share, with the July update citing a 9.8% annualised interim yield and 12.3% grossed-up yield.
  • Net Assets were approximately $1.4 billion, while the portfolio held 8.7% in cash at 31 July 2026.

WAM Capital Limited (ASX:WAM) remains focused on delivering Shareholder income through its portfolio of Australian listed companies, with the dividend data showing an interim payment of $0.077 per share and an annual yield of 10.03%. The dividend carried an ex-dividend date of 18 May 2026, a Record Date of 19 May and a payment date of 29 May. It was 60% franked.

WAM Capital's 12 August investment update provides a slightly different reference point for the annualised dividend yield. Based on the 31 July share price and an annualised FY2026 interim dividend of 15.5 cents per share, the company reported a 9.8% annualised interim dividend yield. The corresponding grossed-up yield, which includes the value of franking credits, was 12.3%.

July NTA Declines

The July update showed a decline in WAM Capital's net tangible assets during the month. NTA before tax fell from 122.20 cents per share in June to 119.50 cents at 31 July. NTA after the tax refund stood at 121.17 cents per share.

The company said the July after-tax NTA figure included a current tax asset of $19.0 million, equivalent to 1.67 cents per share, relating to the 2026 financial year. This amount is expected to be refunded through the company's 2026 income tax return.

The investment portfolio also decreased during July. This contrasts with the company's longer-term investment record, with WAM Capital reporting portfolio performance of 14.3% per annum since inception in August 1999, compared with 8.5% per annum for the S&P/ASX All Ordinaries Accumulation index in the July update.

Portfolio Performance Reflects Mixed Stock Movements

The July portfolio movement was influenced by individual holdings moving in different directions. Firmus Technologies was identified as a contributor to portfolio performance, while Advanced Innergy Holdings (ASX:AIH) detracted.

Firmus Technologies attracted attention after announcing a US$2.0 billion capital raise at an issue price of $230 per share, implying a valuation of approximately $15.5 billion. WAM Capital highlighted the company's development of a $2.1 billion AI factory in Launceston and a Partnership with NVIDIA to develop an industrial-scale AI factory in Indonesia.

Advanced Innergy, meanwhile, came under pressure following its $90 million Acquisition of Matrix Composites & Engineering (ASX:MCE). WAM Capital noted that the market reacted negatively to concerns surrounding the acquisition multiple, near-term Earnings contribution and increased leverage.

Portfolio Remains Concentrated Outside the Largest ASX Stocks

At 31 July, WAM Capital's $1.4 billion portfolio had 8.7% allocated to cash. The portfolio was heavily weighted toward smaller companies, with 46.1% allocated to ASX companies ranked 101–300 by Market Capitalisation and another 31.0% outside the ASX 300.

Sector exposure was led by industrials at 18.6%, followed by financials at 14.1%, consumer discretionary at 12.9% and information technology at 12.7%. Real estate represented 8.2%, materials 7.4%, communication services 7.4% and healthcare 6.5%.

This composition means portfolio performance can be influenced significantly by movements in smaller and mid-sized companies, where individual corporate developments can have a greater effect on returns.

Dividend Capacity Depends on Profits and Franking Credits

WAM Capital's dividend profile also comes with an explicit dependency on investment performance and franking-credit generation. The company stated that its ability to continue paying dividends at the current level depends on generating additional profits reserves through positive portfolio performance in FY2027 and accumulating franking credits.

As at July, WAM Capital reported 13.3 cents per share in its profits reserve. It also reported 339.25 cents per share in dividends paid since inception, rising to 478.0 cents per share when the value of franking credits is included.

The figures highlight the relationship between the headline Dividend Yield and the investment company's underlying portfolio performance. Distributions are not independent of realised investment gains, profits reserves and available franking credits.

Conclusion

WAM Capital's (ASX:WAM) income profile remains a prominent feature, with the data showing a $0.077 interim dividend, 10.03% annual yield and 60% franking. The August update, however, presents a mixed July picture, with the investment portfolio declining and NTA before tax falling to 119.50 cents per share from 122.20 cents in June. The company continues to hold a substantial allocation to smaller Australian companies and 8.7% cash, while its stated ability to maintain dividends at the current level depends on future portfolio performance, profits reserves and the generation of additional franking credits.