WAM Capital Ltd (ASX:WAM) goes ex-dividend on 8 October 2026 for a final dividend of 7.75 cents per share, listed as $0.077. The dividend is partially franked at 60%, and payment is scheduled for 21 October 2026. Investors who buy shares on or after the ex-date will not receive this payment. The final dividend brings WAM Capital's FY2026 full-year dividend to 15.5 cents per share, franked at 60%. For FY2027, the company has set a full-year dividend target of 8.0 cents per share, comprising an interim target of 4.0 cents and a final target of 4.0 cents, both franked at 60%. This represents a lower dividend level than FY2026.

The partial franking at 60% reflects the franking credits available to the company, and the lower FY2027 target signals that dividends are being reset to a level the board considers sustainable given the profits reserve. Shareholders on the register before 8 October are expected to receive the final payment of 7.75 cents.

Company Overview

WAM Capital is a listed investment company managed by Wilson Asset Management. It invests in a portfolio of Australian listed companies, with a focus on small to medium-sized industrial businesses, and uses research-driven and market-driven approaches to identify investment opportunities. The company's lead portfolio manager is Oscar Oberg, with Tobias Yao as portfolio manager. WAM Capital has been operating since August 1999 and is one of several listed investment companies managed by Wilson Asset Management.

Recent Developments

On 22 September 2026, WAM Capital held its FY2026 Full Year Results Q&A webinar and released an accompanying presentation. Key points include:

  • The FY2026 full-year dividend was 15.5 cents per share, including the 7.75 cent final dividend, both franked at 60%.
  • The FY2027 full-year dividend target is 8.0 cents per share, franked at 60%.
  • The FY2026 dividend yield on NTA, grossed up, was 15.9%, compared with 4.4% for the S&P/ASX All Ordinaries Accumulation Index.
  • The FY2027 dividend target yield was 6.8%, or 8.5% grossed up, based on the 21 September 2026 share price of $1.175.
  • Profits reserve was 5.7 cents per share at 31 August 2026, after payment of the FY2026 final dividend.
  • The investment portfolio returned -10.5% in the 12 months to 30 June 2026, while it has returned 14.5% per annum since inception in August 1999, outperforming the All Ordinaries Accumulation Index by 6.0% per annum.

The presentation identified several macro headwinds for small-to-medium industrial companies on the ASX during FY2026, including the reversal of the interest rate cutting cycle into a hiking cycle, geopolitical risks driving inflation, commodity prices and energy costs, artificial intelligence affecting the perceived long-term value of small-cap companies, and federal budget and policy changes around capital gains tax and negative gearing. The presentation also compared the performance of other Wilson Asset Management LICs, including WAM Microcap, WAM Research and WAM Active.

The presentation showed that WAM Capital's portfolio performance is calculated before expenses, fees, taxes and the impact of capital management initiatives, to allow comparison with the relevant index. Despite the negative FY2026 return, the long-term record since 1999 remains ahead of the All Ordinaries Accumulation Index.

Sector Context

Listed investment companies focused on small and mid-cap Australian equities have faced a difficult environment, as rising interest rates and inflation have weighed on smaller industrial businesses. These companies are often more sensitive to borrowing costs and economic conditions than large caps. At the same time, resource stocks have benefited from higher commodity prices, leading to differences in performance across sectors.

LIC dividends are typically paid from profits reserves built up over time, which allows companies to smooth payments through market cycles. However, extended periods of weak performance can deplete reserves and lead to lower dividend targets. Franking levels depend on tax paid by the LIC and franked dividends received from investments.

Wilson Asset Management manages several listed investment companies with different mandates, and their results in FY2026 varied widely, from large gains at WAM Active to losses at WAM Capital and WAM Research. This highlights how investment style and market capitalisation focus can lead to different outcomes in the same market environment.

Risks

WAM Capital's investment portfolio declined in FY2026, and its profits reserve has reduced to 5.7 cents per share, which underpins the lower FY2027 dividend target. If performance does not improve, dividends could be reduced further. The final dividend is only partially franked. The share price can trade at a premium or discount to NTA. Exposure to small and mid-cap industrial companies means returns may be volatile. Share prices typically adjust on the ex-dividend date.

The presentation identified policy changes around capital gains tax and negative gearing as headwinds, and further changes to tax policy could affect investor demand for certain asset classes. Interest rate increases may also continue to weigh on smaller industrial companies.

Catalysts to Watch

Investors may watch for the payment of the final dividend on 21 October 2026, monthly NTA reports, and the declaration of the FY2027 interim dividend against the 4.0 cent target. Changes in interest rates and the performance of small-cap industrial stocks will be relevant to portfolio returns and profits reserves.

Commentary from the portfolio managers on the outlook for small-to-medium industrial companies and any changes in the macro headwinds identified in the presentation may help investors assess the potential for improved performance. The profits reserve balance will also be watched as an indicator of future dividend capacity.

The Bottom Line

WAM Capital's 7.75 cent final dividend, franked at 60%, goes ex on 8 October, payable on 21 October. The company has set a lower FY2027 dividend target of 8.0 cents following a negative year for the portfolio.