WAM Income Maximiser Delivers First Fully Franked Dividend: What’s Next?
WAM Income Maximiser (ASX – WMX) has declared its first monthly fully franked dividend, marking a significant milestone shortly after its April 2025 IPO. The company aims to steadily grow dividends while targeting a yield above the RBA cash rate.
- Inaugural fully franked dividend of 0.20 cents per share declared
- Dividend payable on 29 August 2025 with a Dividend Reinvestment Plan active
- Net tangible assets grew 2.0% since IPO in April 2025
- Investment portfolio outperformed benchmark with a 5.2% gross running yield
- Target income return set at RBA Cash Rate plus 2.5% per annum including franking credits
Inaugural Dividend Declaration
WAM Income Maximiser Limited (ASX, WMX), a newly listed investment company managed by Wilson Asset Management, has announced its inaugural monthly fully franked dividend of 0.20 cents per share. This dividend, payable on 29 August 2025, reflects the company's initial profits reserve, capital profits reserve, and franking credits as of 30 June 2025. The declaration marks a key milestone for the LIC, which listed only a few months ago in April 2025.
Portfolio Performance and Income Strategy
Since its IPO, WAM Income Maximiser’s net tangible assets (NTA) have grown by 2.0%, signaling early capital growth. The investment portfolio has also outperformed its benchmark, delivering a gross running yield of 5.2% including franking credits. This performance is notable given the short timeframe since the IPO and reflects Wilson Asset Management’s strategic deployment of capital into a mix of debt and equity positions.
The company’s income strategy focuses on generating returns through a blend of income from high-quality Australian equities and investment-grade corporate debt. The equity portfolio is balanced between growth and income stocks, with a tilt towards equities relative to the benchmark to capture both capital appreciation and dividend income.
Dividend Growth Outlook and Market Context
WAM Income Maximiser aims to gradually increase its monthly dividend over the first 12 months to reach an annualised target income return of the Reserve Bank of Australia (RBA) cash rate plus 2.5%, inclusive of franking credits. This target is an objective rather than a forecast and depends on maintaining adequate profit reserves and franking credits.
Lead Portfolio Manager Matthew Haupt highlighted the resilience of the Australian economy and the recent fall in the cash rate, which provides scope for further capital growth. The investment team anticipates two additional RBA rate cuts by the end of 2025, which could influence income returns and portfolio positioning.
Dividend Reinvestment Plan and Shareholder Benefits
The company’s Dividend Reinvestment Plan (DRP) is active for the inaugural dividend, allowing shareholders to reinvest dividends without a discount. The DRP uses a volume weighted average price over four trading days commencing on the ex-dividend date to determine the issue price of new shares, offering a convenient way for investors to compound their holdings.
WAM Income Maximiser’s approach reflects Wilson Asset Management’s broader philosophy of delivering consistent income and capital growth to retail and wholesale investors, backed by over 27 years of experience managing listed investment companies.
Bottom Line?
As WAM Income Maximiser embarks on its dividend journey, investors will watch closely to see if it can sustain growth amid evolving economic conditions.
Questions in the middle?
- How will further RBA rate cuts impact the company’s income yield and dividend growth?
- What is the balance between equity and debt holdings as the portfolio evolves?
- Can WAM Income Maximiser maintain its outperformance relative to benchmarks over the next year?
