WAM Income Maximiser Declares October Dividend, Signals Strong Growth Outlook
WAM Income Maximiser Limited has declared a fully franked dividend for October 2025, reflecting robust portfolio gains since its April launch and providing dividend guidance through year-end.
- October 2025 fully franked dividend of 0.30 cents per share declared
- Investment portfolio up 8.6% since April 2025 inception
- Dividend guidance set for November and December with increasing payouts
- Portfolio strategy focuses on high-quality Australian equities and short-duration floating rate notes
- Target income return aims for RBA cash rate plus 2.5%, including franking credits
Strong Start for WAM Income Maximiser
WAM Income Maximiser Limited (ASX – WMX), a listed investment company managed by Wilson Asset Management, has announced a fully franked dividend of 0.30 cents per share for October 2025, payable on the 31st of the month. This dividend declaration follows a promising start for the company since its inception in April 2025, with the investment portfolio appreciating by an estimated 8.6%.
Chairman Geoff Wilson AO highlighted the company’s strong performance and the consistent premium trading of WMX shares relative to net tangible assets, underscoring robust market demand. The dividend is supported by profits reserves, capital profits reserves, and available franking credits as of 30 September 2025.
Dividend Guidance and Income Targets
Looking ahead, the Board has provided guidance for the final two months of 2025, with dividends expected to rise to 0.35 cents per share in November and 0.40 cents in December, both fully franked. This aligns with the company’s policy to deliver regular monthly dividends, contingent on sufficient profits and franking credits, and prudent business practices.
Lead Portfolio Manager Matthew Haupt explained the portfolio’s positioning amid current economic conditions. With expectations of potential Reserve Bank of Australia (RBA) rate cuts, the portfolio targets an income return of the RBA cash rate plus a 2.5% spread, equating to approximately 5.85% including franking credits. The current weighted average gross running yield stands at 4.6%, excluding capital growth.
Investment Strategy and Market Positioning
WAM Income Maximiser’s strategy emphasizes a short-duration debt portfolio dominated by floating rate notes, which is well-suited to the anticipated interest rate environment. The corporate bond holdings focus on high-quality issuers to mitigate risk, though tight credit spreads limit opportunities for capital gains from spread compression.
On the equity side, the portfolio is overweight in resources stocks, reflecting an optimistic view on global growth re-acceleration and stimulus measures from China. Historical trends suggest that rising short-term bond yields in Australia often coincide with outperformance in the resources sector, a dynamic WMX is positioned to benefit from.
Dividend Reinvestment Plan and Shareholder Benefits
The Dividend Reinvestment Plan (DRP) remains active, allowing shareholders to reinvest dividends without a discount, using the volume weighted average market price over four trading days commencing on the ex-dividend date. This offers an efficient way for investors to compound their holdings in WMX.
Overall, WAM Income Maximiser’s early performance and clear dividend policy provide a compelling proposition for investors seeking regular income with exposure to quality Australian companies and corporate debt.
Bottom Line?
As WAM Income Maximiser charts its course through 2025, investors will watch closely how its income targets and sector bets withstand evolving market conditions.
Questions in the middle?
- How will potential RBA rate cuts impact WMX’s income returns and portfolio yield?
- Can the resources sector overweight sustain performance amid global growth uncertainties?
- What are the risks to dividend sustainability if market conditions materially change?