WAM Capital Boosts Dividends as ALS and HUB24 Drive Portfolio Gains
WAM Capital Limited’s July 2025 update reveals a robust net tangible asset position and a healthy interim dividend, underpinned by strong performances from key holdings ALS and HUB24.
- Net tangible assets per share at 323.75 cents
- Annualised interim dividend of 15.5 cents, 60% franked
- Investment portfolio outperforms ASX All Ordinaries with 15.6% annualised return
- Strong contributions from ALS and HUB24 in July
- Diversified portfolio with 9.2% cash holdings
WAM Capital’s Solid Financial Position
WAM Capital Limited (ASX – WAM) has reported a confident investment update for July 2025, highlighting a net tangible asset (NTA) per share of 323.75 cents before tax. This figure reflects the company’s strong balance sheet and underpins an annualised interim dividend of 15.5 cents per share, partially franked at 60%. The grossed-up dividend yield, which includes franking credits, stands at an attractive 11.7%, signaling a shareholder-friendly approach amid a competitive market environment.
Portfolio Performance Outpaces Market Benchmarks
WAM Capital’s investment portfolio continues to deliver, with an annualised return of 15.6% since inception in August 1999, comfortably outperforming the S&P/ASX All Ordinaries Accumulation Index’s 8.7% over the same period. The July update credits notable contributions from ALS Limited (ASX – ALQ) and HUB24 Limited (ASX – HUB), both of which have demonstrated strong operational momentum and strategic clarity.
ALS and HUB24 – Engines of Growth
ALS, a global leader in testing and inspection services, reaffirmed its guidance for organic revenue growth of 5-7% alongside margin expansion during its recent investor day. The company’s focus on digitisation and artificial intelligence as drivers of medium-term margin improvement, coupled with a robust balance sheet enabling earnings-accretive acquisitions, positions it well for continued growth. Meanwhile, HUB24’s share price surged approximately 20% in July, buoyed by record platform net inflows of $19.8 billion for FY2025 and a 30% year-on-year increase in funds under administration to $136.4 billion. The completion of a strategic partnership migration with Equity Trustees further solidifies HUB24’s growth trajectory.
Diversification and Cash Position
WAM Capital maintains a diversified portfolio across sectors such as consumer discretionary, financials, healthcare, and information technology, with a notable 9.2% allocation to cash. This liquidity provides flexibility to capitalise on emerging undervalued growth opportunities within the Australian market. The company’s disciplined investment process, combining deep research with market-driven tactics, continues to underpin its strategy of identifying quality companies with strong free cash flow and return on equity metrics.
Looking Ahead
While the company’s ability to sustain its dividend depends on ongoing portfolio performance and the generation of franking credits, WAM Capital’s current positioning and recent results suggest a positive outlook. Investors will be watching closely for updates on portfolio shifts and dividend guidance in the coming months as the company navigates evolving market conditions.
Bottom Line?
WAM Capital’s July update reinforces its status as a resilient LIC with promising growth catalysts ahead.
Questions in the middle?
- How sustainable are WAM Capital’s dividend levels amid changing market dynamics?
- What acquisition opportunities might ALS pursue to accelerate growth?
- Can HUB24 maintain its rapid inflow momentum in a competitive wealth management landscape?
