WAM Strategic Value Confirms Fully Franked Dividend and DRP Price for FY2025
WAM Strategic Value Limited has updated its interim dividend and Dividend Reinvestment Plan details for the six months ending December 2024, confirming a fully franked dividend of 3 cents per share payable in late May.
- Interim dividend of AUD 0.03 per share fully franked
- Dividend payable on 29 May 2025
- Dividend Reinvestment Plan (DRP) price set at AUD 1.11085 with no discount
- DRP securities to be newly issued shares or existing shares purchased on-market
- No minimum or maximum participation limits in DRP
Dividend Update and Payment Details
WAM Strategic Value Limited (ASX: WAR) has provided an update to its previously announced dividend distribution for the six months ending 31 December 2024. The company confirmed an ordinary interim dividend of 3 cents per share, fully franked at the corporate tax rate of 30%, payable on 29 May 2025. The record date for shareholders entitled to this dividend was 2 May 2025, with the ex-dividend date falling on 1 May 2025.
Dividend Reinvestment Plan Clarifications
Alongside the dividend announcement, WAM Strategic Value clarified details surrounding its Dividend Reinvestment Plan (DRP). The DRP price has been set at AUD 1.11085 per share, calculated as the volume weighted average market price (VWAP) over four trading days commencing on the ex-dividend date, with no discount applied. Shareholders who participate in the DRP will receive new fully paid ordinary shares or existing shares purchased on-market, at the discretion of the board.
The company emphasized that there are no minimum or maximum limits on participation in the DRP, and the default option for shareholders who do not elect to participate is to receive the dividend in cash. For this interim dividend, all DRP shares were satisfied by transferring existing shares purchased on-market, a move that can help manage dilution while supporting liquidity.
Implications for Investors
This update provides investors with greater clarity on the mechanics of the dividend and reinvestment options, reinforcing WAM Strategic Value’s commitment to delivering fully franked income streams. The absence of a discount on the DRP price suggests a conservative approach to capital management, potentially reflecting confidence in the company’s share price stability. Investors considering reinvestment will weigh the benefits of compounding their holdings against the opportunity cost of receiving cash dividends.
Overall, the announcement aligns with WAM Strategic Value’s steady distribution policy and offers shareholders flexibility in managing their income and capital growth preferences. Market participants will be watching how the DRP participation rates unfold and whether the company maintains this approach in future dividend cycles.
Bottom Line?
WAM Strategic Value’s clear dividend and DRP update sets the stage for steady income delivery, but investor uptake of the DRP will be a key signal to watch.
Questions in the middle?
- Will WAM Strategic Value maintain a zero discount on the DRP in future dividends?
- How will market conditions affect shareholder participation in the DRP this cycle?
- Could the company shift towards issuing more new shares versus on-market purchases under the DRP?
