Why Income Strategies Deserve a Comparison Beyond the S&P/ASX 200 With Whitefield Income (ASX:WHI) and Solaris Australian Equity Income Plus (ASX:SET)

Two listed Investment companies, both paying fully franked dividends every month, have taken noticeably different routes to Australian Equity income. Whitefield Income (ASX:WHI) wants to issue up to 120 million new shares, subject to a Shareholder vote on 16 October 2026. Solaris Australian Equity Income Plus (ASX:SET) listed in April 2026 and is still lifting its monthly payout.

The comparison is useful because each trades above the value of its assets, charges a similar base fee and targets franked income, yet they build portfolios in contrasting ways and sit at very different stages of their lives. Neither is an S&P/ASX 200 constituent.

What each company is

Both are listed investment companies (LICs): companies that hold a portfolio of shares and pay dividends from the income and gains it generates. Neither is an operating business, so their value rests on net tangible Assets (NTA), the portfolio's worth less liabilities, per share.

Whitefield Income listed on 4 December 2024 and is managed by Whitefield Capital Management. Its August 2026 NTA report describes "a systematic approach to equity income" measured against an equal-weighted, franking-adjusted S&P/ASX 300 total return index.

Solaris Australian Equity Income Plus raised $188.4 million at $2.00 a share and listed on 17 April 2026. Its manager, Solaris Investment Management, is 55.5 per cent staff-owned, with Pinnacle Investment Management Group holding the rest, according to the 2026 annual report.

Two ways to build an income portfolio

Whitefield Income spreads its bets widely. At the end of August its largest position, BHP, was 3.4 per cent of the portfolio, followed by South32 at 2.7 per cent and Codan, Fortescue, Ventia and HUB24 at 2.5 per cent each. Materials made up 33.6 per cent and energy 11.8 per cent, meaning resource-sector dividends carry considerable weight.

Solaris uses fundamental research to hold about 40 to 70 stocks, with 63 at 30 June, with positions kept within plus or minus 5 per cent of index weight. It does not borrow or short-sell, and uses only Index Futures as derivatives. It also seeks "Tactical Income Opportunities" such as special dividends and capital management initiatives.

Solaris manages the portfolio from the perspective of a zero to 15 per cent tax-rate investor, reflecting the value franking credits hold for Superannuation funds and retirees. Its benchmark is the S&P/ASX 200 franking Credit adjusted total return index on a tax-exempt basis.

Fees and the premium question

Whitefield Income's FY26 preliminary final report sets its fee at 0.0625 per cent of portfolio value a month, plus a performance fee of 10 per cent of returns above benchmark with a half-yearly cap. No performance fee was payable for FY26. Solaris charges a higher base fee but, according to its annual report, no performance fee, plus a 1.5 per cent fee on NTA for shares bought back in the first five years.

A premium means buyers pay more than the underlying assets are worth. ASX market data showed Solaris at $2.11, a Market Value of about $199 million. Against its 24 September pre-tax NTA of $1.974, that is a premium of about 6.9 per cent by our calculation. Premiums can shrink quickly if sentiment turns.

Dividends, franking and our gross-up comparison

Whitefield Income pays a monthly base dividend of 0.583 cents plus half-yearly top-ups; September's dividend is 0.883 cents. By our calculation, dividends for the FY26 months totalled about 7.3 cents a share. The company paid $14.3 million in dividends against FY26 net profit of $16.0 million, while total comprehensive income was lower at $7.2 million. Its portfolio returned 6.6 per cent after costs in FY26, against 6.4 per cent for its benchmark.

Solaris resolved monthly dividends of 0.3 cents for August, 0.5 cents for September and 0.7 cents for October, all fully franked. Its first reporting period, from 13 February to 30 June 2026, produced net profit of $727,000 and a flat total return against a benchmark fall of 1.01 per cent.

Because both frank at the 30 per cent company tax rate, each cent of dividend carries about 0.43 cents of franking credit. By our calculation, Whitefield Income's 0.583-cent base carries about 0.25 cents of credits, grossing up to roughly 0.83 cents for an investor who can use them fully. Solaris' 0.7-cent October dividend carries 0.3 cents, grossing up to 1.0 cent. Those cash amounts are on very different share prices, so they are not a Yield comparison.

Growth, capital raising and limits of the comparison

Whitefield Income has grown through issuance. The notice of meeting seeks ratification of 40.1 million shares placed at $1.32 in December 2025, raising about $52.9 million, and approval for up to 120 million more. By our calculation, that ceiling equals about 39 per cent of the 308.4 million shares on issue at 30 June.

The resolution allows pricing as low as 75 per cent of the 15-day volume-weighted average price. At August's $1.32 price, that floor would be about $0.99, below NTA; issuing at such a price would dilute NTA per share, though the notice sets no actual price.

Solaris' franking account shows its young age: $131,000 was available at 30 June before adjustments, against a $606,000 franking debit from the three resolved dividends. It relies on franked income flowing in from its holdings to keep paying fully franked dividends.

The comparison has limits. Solaris has reported barely three months of results, while Whitefield Income has a full financial year. Their benchmarks differ, and Whitefield Income's post-tax NTA of $1.23 sits above its pre-tax figure.

What to follow next

For Whitefield Income, the 16 October extraordinary general meeting and the pricing of any Placement are the near-term markers, along with whether the premium holds. For Solaris, the 0.7-cent dividend has a 20 October Record Date and 30 October payment date. Monthly NTA updates will show how each portfolio is tracking.