WAM Income Maximiser Portfolio Up 9% Since April, Declares 0.25c Dividend

Strong Start for WAM Income Maximiser

WAM Income Maximiser Limited (ASX, WMX), a newly listed investment company launched in April 2025, has announced a fully franked dividend of 0.25 cents per share for September. This dividend declaration follows a promising start, with the investment portfolio appreciating 9.0% since inception and outperforming its benchmark in August.

The company’s estimated pre-tax net tangible assets (NTA) stood at $1.62 per share as of 31 August 2025, underscoring the solid foundation underpinning the dividend payout. The dividend, payable on 30 September, is supported by accumulated profits reserves, capital profits reserve, and franking credits, reflecting prudent capital management.

Investment Strategy and Market Positioning

WAM Income Maximiser aims to deliver monthly fully franked dividends alongside capital growth by investing in Australia’s highest quality companies and investment-grade corporate debt. The portfolio tilts towards ASX300 equities and corporate debt instruments selected for their strong capital management and sustainable distributions.

Lead Portfolio Manager Matthew Haupt highlighted the strategic asset allocation shift towards equities and growth exposures, which has propelled both capital growth and income ahead of expectations. In anticipation of tighter liquidity and increased systematic selling, the portfolio has been adjusted to reduce risk exposure while maintaining high-conviction positions to capture emerging market opportunities.

Dividend Reinvestment Plan and Income Targets

The company’s Dividend Reinvestment Plan (DRP) will operate without a discount, allowing shareholders to reinvest dividends at a price based on the volume weighted average market price over four trading days commencing on the ex-dividend date. This approach supports shareholder value by facilitating compounding returns.

WAM Income Maximiser’s target income return objective is set at the Reserve Bank of Australia’s cash rate plus 2.5% per annum, including franking credits. While this is an objective rather than a forecast, the company is on track to meet this target as it continues to build profits reserves and franking credits.

Outlook and Market Context

As WAM Income Maximiser navigates a market environment characterized by tighter liquidity and volatility, its disciplined investment approach and focus on high-quality assets position it well for sustainable income generation and capital growth. The upcoming announcement of the final pre-tax NTA for August and the October dividend declaration will be key indicators of ongoing performance.