WAM Alternative Assets Raises Dividend 15.4% on Strong Portfolio Gains
WAM Alternative Assets Limited has announced a 15.4% increase in its fully franked final dividend for FY2025, reflecting robust portfolio gains and a confident outlook under Wilson Asset Management's stewardship.
- 15.4% increase in fully franked final dividend to 3.0 cents per share
- Investment portfolio grew 5.3% in FY2025 and 8.9% per annum since 2020
- Operating profit before tax of $8.3 million and after tax $6.2 million
- 19% of portfolio remains in legacy assets, expected to exit in FY2026
- Dividend reinvestment plan operating without discount
Dividend Growth Signals Confidence
WAM Alternative Assets Limited (ASX, WMA) has declared a fully franked final dividend of 3.0 cents per share for the 2025 financial year, marking a 15.4% increase over the previous year. This raises the full year dividend to 5.7 cents per share, delivering a fully franked dividend yield of 6.0% based on the current share price. Including franking credits, the grossed-up yield stands at an attractive 8.6%, underscoring the company’s commitment to returning value to shareholders.
Portfolio Performance Under New Management
The investment portfolio, managed by Wilson Asset Management since October 2020, has shown steady growth with a 5.3% increase in FY2025 and an impressive 8.9% annualised return since the manager’s appointment. This performance has been achieved with notably lower volatility compared to public markets, reflecting a disciplined and strategic approach to asset selection and risk management.
Chairman Michael Cottier praised Portfolio Manager Nick Kelly and his team for their effective stewardship since Kelly’s appointment earlier this year. Kelly highlighted that the revitalisation strategy is largely complete, positioning the portfolio for a new growth phase driven by operational improvements and earnings growth across private market investments.
Legacy Assets and Future Outlook
Approximately 19% of the portfolio remains invested in legacy assets, which the company expects to exit during FY2026. The successful realisation of these assets could provide further capital to reinvest in higher-growth opportunities. The company’s operating profit before tax was $8.3 million, with an after-tax profit of $6.2 million, supporting a strong profits reserve that covers 2.4 years of dividends.
The portfolio is diversified across private equity, water, infrastructure, real estate, agriculture, and private debt, providing a broad exposure to alternative asset classes. This diversification, combined with the listed investment company structure, offers shareholders liquidity alongside access to institutional-grade private market investments.
Dividend Reinvestment and Market Position
WAM Alternative Assets continues to operate a dividend reinvestment plan (DRP) without a discount, allowing shareholders to compound their investment at prevailing market prices. The company’s pre-tax net tangible assets stand at $1.17 per share, reflecting the underlying value of its portfolio.
Looking ahead, the company’s ability to maintain fully franked dividends depends on tax payments from realised profits. While the current franking account can cover the FY2025 final dividend and part of the FY2026 interim dividend, future dividends may be partially franked if tax payments do not keep pace with distributions.
Bottom Line?
With a strengthened portfolio and rising dividends, WAM Alternative Assets is poised for growth, but investors will watch closely how legacy asset exits and dividend franking evolve.
Questions in the middle?
- How will the exit of legacy assets in FY2026 impact portfolio returns and dividend sustainability?
- What strategies will Wilson Asset Management employ to sustain growth amid evolving private market conditions?
- Will future dividends maintain full franking given potential constraints on the franking account?
