Partial Franking in WAM Capital’s Dividend Raises Tax Considerations for Investors
WAM Capital Limited has announced a six-month ordinary dividend of AUD 0.0775 per share, partially franked at 60%, payable on April 30, 2025. The company’s Dividend Reinvestment Plan remains fully available to shareholders.
- Dividend of AUD 0.0775 per ordinary fully paid share
- 60% of dividend is franked, 40% unfranked
- Ex-dividend date set for April 16, 2025
- Dividend payment scheduled for April 30, 2025
- Full Dividend Reinvestment Plan (DRP) available with no discount
Dividend Announcement Overview
WAM Capital Limited (ASX: WAM), a prominent player in the Australian investment management sector, has declared an ordinary dividend of AUD 0.0775 per fully paid ordinary share. This dividend relates to the six-month period ending December 31, 2024, underscoring the company’s ongoing commitment to delivering shareholder returns amid a dynamic market environment.
The dividend will be paid on April 30, 2025, with the ex-dividend date set for April 16, 2025, and the record date on April 17, 2025. These dates are critical for investors aiming to qualify for the dividend, as shares purchased on or after the ex-date will not be eligible for this distribution.
Franking and Tax Implications
Notably, the dividend is partially franked at 60%, reflecting the company’s tax-paid profits. This means shareholders will receive franking credits equivalent to AUD 0.0465 per share, while the remaining 40% of the dividend, amounting to AUD 0.0310 per share, is unfranked. This partial franking status may influence the after-tax income for different classes of investors, depending on their tax circumstances.
Dividend Reinvestment Plan Details
WAM Capital continues to offer a fully operational Dividend Reinvestment Plan (DRP) for this dividend. Shareholders who elect to participate can reinvest their dividends into new shares without any discount, with the DRP price calculated as the volume weighted average market price (VWAP) over the ex-date and the following three trading days. The deadline for DRP election is April 23, 2025, at 5:00 pm.
The DRP shares will rank pari passu with existing shares from the issue date, ensuring equal rights and entitlements. There are no minimum or maximum participation limits, making the plan accessible to all shareholders regardless of their holding size.
Market and Investor Considerations
This dividend announcement signals WAM Capital’s steady financial footing and its ability to generate distributable earnings. The partial franking may appeal to investors seeking a balance between franked income and cash flow. Meanwhile, the availability of the DRP without a discount could encourage reinvestment, potentially supporting the company’s share price stability post-ex-dividend.
Investors should monitor the stock’s performance around the ex-date and payment date, as dividend announcements often influence trading activity and market sentiment.
Bottom Line?
WAM Capital’s steady dividend and accessible DRP set the stage for shareholder value continuity in 2025.
Questions in the middle?
- Will WAM Capital maintain or increase dividend payouts in future periods?
- How will partial franking impact different investor segments’ after-tax returns?
- What market reaction can be expected around the ex-dividend and payment dates?
