WAM Global’s Operating Profit Jumps 168%, Dividends Rise

Strong Portfolio Performance Drives Dividend Increase

WAM Global Limited (ASX: WGB) has delivered a standout performance with its investment portfolio rising 23.7% over the year to 31 December 2024. This robust growth has empowered the Board to announce an increased fully franked interim dividend of 6.5 cents per share alongside a special fully franked dividend of 4.0 cents per share. Together, these dividends offer shareholders an attractive yield well above global equity market averages.

The company’s operating profit before tax soared by 168% to $107 million, reflecting the strength of its portfolio and operational execution. After tax, operating profit reached $74.9 million, underscoring WAM Global’s solid financial health and capacity to reward investors.

Outperformance Amid Market Concentration

Despite the MSCI World Index (AUD) rising 14.6% in the same period, WAM Global’s portfolio grew 13.4% in the half year to December 2024 and notably outperformed the index by 2.1% in January 2025. This outperformance is particularly significant given the MSCI’s gains were heavily concentrated in a handful of mega-cap stocks dubbed the 'Magnificent Seven', which WAM Global deliberately underweights in favour of high-quality, undervalued companies.

Lead Portfolio Manager Catriona Burns highlighted key contributors such as SAP, MSCI, TransUnion, and Visa, which have benefited from structural trends and strategic positioning. The portfolio’s exposure to sectors like capital markets, industrials, and information technology further supports its growth trajectory.

Strategic Positioning for Future Catalysts

The portfolio is also positioned to capitalize on anticipated shifts in the US political and economic landscape, including an expected uptick in mergers and acquisitions driven by reduced regulatory barriers under the Trump administration. Investments in companies like Ferguson Enterprises and Teledyne Technologies are poised to benefit from reshoring trends and industrial recovery.

Chairman Geoff Wilson AO noted that despite the increase in net tangible assets (NTA), the share price has not fully reflected this growth, presenting an attractive discount for investors. Since its 2018 inception, WAM Global has delivered a total of 76.4 cents per share in fully franked dividends including franking credits, reinforcing its commitment to steady income streams.

Looking Ahead

With a diversified portfolio weighted heavily towards US equities and a focus on undervalued growth companies, WAM Global appears well-positioned to sustain its performance. The company’s Dividend Reinvestment Plan (DRP) remains active, providing shareholders with flexible options to compound their investment.

As global markets navigate ongoing volatility and concentration risks, WAM Global’s disciplined approach and strategic asset selection may offer a compelling proposition for investors seeking both growth and income.