WAM Income Maximiser Ltd (ASX:WMX) will go ex-dividend on 19 October 2026 for an interim dividend of $0.007 per share. The dividend is fully franked at 100% and is scheduled to be paid on 30 October 2026. Investors buying shares on or after the ex-date will not be entitled to this payment. WAM Income Maximiser pays fully franked dividends monthly, so this payment forms part of a regular income stream. In FY2026, the company paid 6.9 cents per share in fully franked dividends when including the value of franking credits, according to Chairman Geoff Wilson AO. The company's August 2026 fully franked dividend was 0.64 cents per share.

Shareholders on the register before 19 October are expected to receive this monthly payment, and new shares issued under the entitlement offer may also be eligible depending on their issue date. The fully franked status provides franking credits for eligible Australian shareholders.

Company Overview

WAM Income Maximiser is a listed investment company managed by Wilson Asset Management. It uses a flexible multi-asset approach, allocating capital across Australian equities and corporate debt, with the aim of delivering a growing stream of monthly fully franked dividends and capital growth with lower volatility than the share market. Matthew Haupt is lead portfolio manager, and FY2026 was the company's first full financial year.

Recent Developments

On 21 August 2026, WAM Income Maximiser announced its FY2026 performance and an entitlement offer. Key points include:

  • The investment portfolio increased 19.2% in the 12 months to 30 June 2026, outperforming its benchmark by 13.4%, with 17.1% less volatility than the S&P/ASX 300 Accumulation Index.
  • The annualised December 2026 fully franked dividend yield on average pre-tax NTA was 7.1%, including franking credits, exceeding the target income return.
  • The average target income return over the 12 months to 30 June 2026 was 6.3%, including franking credits.
  • A 2-for-5 pro-rata non-renounceable entitlement offer at $1.62 per new share closed on 21 August 2026, priced at a 4.1% discount to estimated pre-tax NTA of $1.69 per share as at 14 August 2026, adjusted for the August dividend, and a 3.6% discount to the share price of $1.68.

Mr Wilson said WAM Income Maximiser delivered a solid first full financial year, generating capital growth and a growing stream of monthly fully franked dividends. He said the company's flexible multi-asset approach enabled the investment team to allocate capital across equities and corporate debt throughout the year.

Mr Haupt said FY2026 was defined by heightened uncertainty, as investors navigated changing interest rate expectations, geopolitical tensions, global trade disruptions and the rapid evolution of artificial intelligence. He said these conditions created opportunities in both equity and debt markets for active investors, and that the team repositioned the portfolio in response to changing economic conditions and interest rate expectations while focusing on high-quality investments. Results of the entitlement offer and top-up facility were expected to be announced on 24 August 2026.

The company said the entitlement offer gave eligible shareholders the opportunity to increase their holding without brokerage or transaction fees. The annualised December 2026 dividend yield on NTA exceeded the company's target income return, indicating that the monthly dividend rate has been set above the target level.

Sector Context

Income-focused listed investment companies aim to provide regular distributions to shareholders, often appealing to retirees and investors seeking steady cash flow. Multi-asset approaches that combine equities and corporate debt can help manage volatility and provide income from both dividends and interest.

Interest rate changes affect both the income available from debt investments and the valuations of equities. Monthly dividend payments require consistent income generation and profits reserves. Entitlement offers allow LICs to raise capital for investment, which can increase scale but may affect existing shareholders who do not participate.

Corporate debt markets have offered higher yields as interest rates increased, making them a source of income for multi-asset funds. Combining equities and debt allows managers to adjust risk and income according to market conditions.

The growth of income-focused LICs reflects demand from investors seeking regular, tax-effective income, particularly among self-managed superannuation funds and retirees who may benefit from franking credits.

Risks

WAM Income Maximiser's returns depend on the performance of its equity and debt investments, which can be affected by market volatility and interest rates. Credit risk in corporate debt investments could affect income. The entitlement offer increased shares on issue, and investment of the new capital will take time. Monthly dividends depend on income and profits reserves and may vary. The share price may trade at a premium or discount to NTA. Share prices typically adjust on the ex-dividend date.

Rapid changes in interest rates could affect the value of debt holdings, and equity market declines could reduce NTA. The company's track record is relatively short, with FY2026 being its first full financial year.

Catalysts to Watch

Investors may watch for payment of the dividend on 30 October 2026, subsequent monthly dividend announcements, NTA updates and how the capital raised through the entitlement offer is deployed. Changes in interest rate expectations will also be relevant to the portfolio's equity and debt allocation.

The results of the entitlement offer and top-up facility, and the subsequent deployment of the additional capital, will be relevant to the portfolio's scale and income generation. Investors may also watch whether the company continues to meet its target income return.

Wrapping Up

WAM Income Maximiser's fully franked monthly dividend of 0.7 cents goes ex on 19 October, with payment on 30 October. Its first full financial year delivered portfolio growth of 19.2% and a growing stream of monthly dividends.