WAM Global’s Dividend Growth Signals Strength Amid Market Volatility Risks
WAM Global Limited reported a robust 39.8% increase in net profit for FY2025, driven by a 19.4% growth in its investment portfolio and declared a fully franked full year dividend of 17 cents per share. The company’s diversified global holdings and disciplined investment approach underpin its strong shareholder returns.
- Net profit after tax rises 39.8% to $103.3 million
- Investment portfolio outperforms MSCI benchmarks with 19.4% growth
- Fully franked full year dividend increased to 17.0 cents per share
- Net tangible assets before tax grow to $2.61 per share
- Total shareholder return of 22.1% including franking credits
Strong Financial Performance
WAM Global Limited has reported a standout financial year for the period ending 30 June 2025, with net profit after tax soaring 39.8% to $103.3 million. This impressive result was underpinned by a 19.4% increase in the company’s investment portfolio, which outperformed key global benchmarks including the MSCI World Index (AUD) and the MSCI World SMID Cap Index.
The company’s operating profit before tax also rose significantly by 37.6% to $147.6 million, reflecting the strength of its diversified portfolio and active management strategy.
Dividend Growth and Shareholder Returns
In recognition of its strong earnings and cash flow, WAM Global declared a fully franked final dividend of 6.5 cents per share, adding to the interim dividend of 6.5 cents and a special fully franked dividend of 4.0 cents per share declared earlier in the year. This brings the total fully franked dividend for FY2025 to 17.0 cents per share, representing a fully franked dividend yield of 5.2% and a grossed-up yield of 7.4% based on the 30 June 2025 share price.
The company’s net tangible assets (NTA) before tax increased to $2.61 per share, up from $2.40 the previous year, signaling solid growth in the underlying value of the company’s assets. Meanwhile, the share price rose from $2.21 to $2.50 over the year, narrowing the discount to NTA from 7.7% to 4.0% and contributing to a total shareholder return (TSR) of 22.1% including franking credits.
Portfolio Composition and Investment Strategy
WAM Global’s portfolio remains heavily weighted towards high-quality international growth companies, with a dominant exposure to US equities (67.8%) and significant holdings across Europe, Asia, and Australia. Key sectors include capital markets, information technology, industrials, and healthcare.
The investment team, led by Catriona Burns CFA, continues to focus on undervalued companies with identifiable catalysts for re-rating, complemented by opportunistic exposure to market mispricing. The portfolio’s outperformance against benchmarks reflects this disciplined approach, including selective investments in companies poised to benefit from thematic tailwinds such as artificial intelligence.
Governance, Advocacy, and Shareholder Engagement
Governance remains a priority, with an experienced board led by Chairman Geoff Wilson AO. The company also actively advocates on regulatory issues affecting investors, including superannuation tax reforms and market structure. WAM Global maintains strong dividend coverage of nearly six years and a robust franking account, supporting its commitment to delivering a steady stream of fully franked dividends.
Shareholder engagement is facilitated through regular updates, educational initiatives, and transparent communication channels, reinforcing WAM Global’s reputation as a trusted listed investment company.
Bottom Line?
WAM Global’s robust profit growth and dividend increase underscore its resilience and strategic positioning, but investors will watch closely how global market volatility and regulatory changes shape its next chapter.
Questions in the middle?
- How will WAM Global navigate potential market volatility given geopolitical tensions and tariff uncertainties?
- What impact might the carried forward underperformance fees have on future management fee structures?
- How will the company’s focus on AI and thematic investing translate into portfolio performance in FY2026?
