WCM Global Growth (ASX:WQG) has a Dividend Reinvestment Plan (DRP) operating for its fully franked 2.35 cent final dividend. The listed investment company pays dividends every quarter and has lodged a notice with the ASX that the DRP for this dividend is underwritten.

Latest developments

WCM Global Growth reported its FY26 results, with net operating profit after tax of $66.7 million, compared with $69.5 million in FY25. Pre-tax Net Tangible Assets (NTA) rose from $2.02 to $2.18 per share over the year, while post-tax NTA lifted from $1.80 to $1.94.

The portfolio returned 16.58% in FY26, behind the 18.26% return of its benchmark, the MSCI All Country World index ex-Australia. The company noted that the portfolio had still outperformed the benchmark over three-year, five-year and since-inception periods. The board declared a fully franked final dividend of 2.35 cents per share for the June quarter, up from 2.21 cents for the March quarter.

The company subsequently lodged an ASX notice on the Underwriting of its DRP, followed by an update to its dividend announcement confirming the DRP price. Earlier in 2026, WQG raised about $85 million through an institutional Placement and an entitlement offer.

Key numbers

Four quarterly dividends have gone ex over the past 12 months, of 2.09 cents, 2.16 cents, 2.21 cents and 2.35 cents per share, all fully franked. Together they total about 8.8 cents per share.

Because the dividends are fully franked at the 30% company tax rate, eligible shareholders may be able to use the attached franking credits, although the value of those credits depends on each investor's tax position.

About the company

WCM Global Growth is an ASX-listed investment company that gives shareholders exposure to an actively managed portfolio of global growth equities. It listed in June 2017 under the name Contango Global Growth and later adopted its current name.

The portfolio is managed by WCM Investment Management, a global equities manager based in California. The manager's approach focuses on companies with expanding competitive advantages and corporate cultures that support them. As a listed investment company, WQG pays dividends from profits it has earned and taxed, which is why its dividends can carry franking credits.

How the DRP works

A DRP lets shareholders receive new shares instead of cash dividends. For WQG's March-quarter dividend, the DRP operated with a 3% discount to the volume-weighted average price (VWAP) of shares sold on the ASX over the five trading days from the ex-date, with new shares issued. Participants do not pay brokerage on shares allocated through the plan.

For the 2.35 cent final dividend, WQG's dividend notice states that the DRP price is the lower of 97% of the VWAP over the five trading days from the ex-date and the pre-tax NTA, representing a 3% discount, with new shares issued to participants. The company confirmed the final DRP price in an updated dividend notice.

The DRP for the final dividend is underwritten by Taylor Collison, supported by Ord Minnett and Morgans. Under the underwriting agreement, the underwriter subscribes for any shortfall between the shares taken up by participating shareholders and the full dividend amount, at the same price as the DRP issue price, for a fee of 3.5% of the value of the dividend. This means the company retains the cash equivalent of the dividend while issuing new shares. DRP terms, including any discount, are set for each dividend and disclosed in the company's ASX notices and DRP rules.

Why it matters for income investors

WQG operates a progressive quarterly dividend policy, under which it aims to lift fully franked dividends over time. Dividends paid during FY26 totalled 8.52 cents per share across four quarters, while the four dividends declared in respect of FY26 total about 8.81 cents per share. Each quarterly dividend over the past year has been higher than the one before.

Quarterly payments provide a more frequent dividend cycle than the half-yearly timetable used by many ASX companies. Shareholders who participate in the DRP receive additional shares in place of cash. Franked dividends are less common for global Equity exposure, since most offshore investments do not generate Australian franking credits.

What comes next

DRP shares for the final dividend are scheduled to be issued on the dividend payment date. WQG publishes weekly and monthly NTA updates, which report the value of the underlying portfolio.

The company has provided guidance for further quarterly dividend increases through FY27, subject to board decisions. Any future dividend amount, franking level or DRP terms will be set by the board and disclosed to the ASX.

Risks and context

Past dividends do not indicate future payments. WQG's dividends depend on its profits reserve and investment returns, which are driven by global share markets and currency movements. A stronger Australian dollar or weaker performance from Growth Stocks could reduce portfolio returns and NTA.

Listed investment companies can trade at a premium or discount to NTA. Underwritten DRPs involve the issue of new shares, which dilutes 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

WCM Global Growth (ASX:WQG) pays fully franked dividends quarterly and has an operating, underwritten DRP for its 2.35 cent final dividend. Higher NTA over FY26 and a progressive dividend policy form part of the company's recent disclosures, while global market volatility, movements in the premium or discount to NTA and DRP dilution remain relevant factors.

Key Insights

WCM Global Growth (ASX:WQG) reported lower FY26 net operating profit after tax than in FY25 but higher pre-tax and post-tax NTA per share, and declared a fully franked final dividend of 2.35 cents per share, continuing a run of quarterly increases under its progressive dividend policy.

The DRP for the final dividend applies a 3% discount, with the price set at the lower of 97% of the five-day VWAP and pre-tax NTA, and is underwritten so that any shortfall is taken up by the underwriter through newly issued shares. Future dividends and DRP terms remain subject to board decisions.