WAM Alternative Assets Limited (ASX: WMA), a listed investment company providing retail investors with exposure to a portfolio of alternative investment strategies, has announced a 15.4% increase in its fully franked final dividend. The Board of Directors declared a fully franked final dividend of 3.0 cents per share, bringing the total fully franked full-year dividend to 5.7 cents per share. This dividend provides shareholders with a fully franked dividend yield of 6.0% and a grossed-up dividend yield of 8.6%, inclusive of franking credits.
The company’s investment portfolio has demonstrated robust growth, increasing by 5.3% during the financial year. Since Wilson Asset Management was appointed as Investment Manager in October 2020, the portfolio has grown by 8.9% per annum. The company noted that approximately 19% of the investment portfolio remains invested in legacy assets, with most expected to be divested during FY2026. WAM Alternative Assets Chair Michael Cottier credited Portfolio Manager Nick Kelly and the investment team for their diligent portfolio management in a dynamic environment.
Portfolio Manager Nick Kelly highlighted that the revitalisation strategy is largely complete, positioning the company for a growth phase. He noted that the company is beginning to see the results of operational improvements, earnings growth, and revaluations across investments made since Wilson Asset Management’s appointment. Kelly also emphasized that enhancements to the investment portfolio over the last six months have positioned the Company for sustainable growth.
The company has 2.4 years of dividend coverage, based on a profits reserve of 14.2 cents per share as of 30 June 2025, before the payment of the fully franked final dividend. The dividend reinvestment plan (DRP) is in operation for this dividend. Since October 2020, WAM Alternative Assets has paid 19.9 cents per share in fully franked dividends, or 27.1 cents per share including the value of franking credits. An unaudited profit before tax of $8.3 million and an operating profit after tax of $6.2 million in its FY2025 results was reported.
