WQG Reports $22.9M Profit, Raises Fully Franked Dividend to 2.16 Cents

Strong Half-Year Financial Performance

WCM Global Growth Limited (ASX, WQG) has released its half-year results for the six months ending 31 December 2025, reporting a net operating profit after tax of $22.868 million. While this represents a decline from the $47.1 million recorded in the previous corresponding period, the company attributes the profit primarily to gains in its investment portfolio managed by WCM Investment Management, LLC.

The net tangible asset (NTA) value per share increased modestly from $2.025 at 30 June 2025 to $2.064 as at 31 December 2025, despite the payment of fully franked dividends during the period. This steady growth in NTA underscores the resilience of the portfolio amid fluctuating market conditions.

Portfolio Performance and Benchmark Comparison

The company’s portfolio delivered a return of 6.23% over the half-year, trailing the MSCI All-Country World ex-Australia Index benchmark return of 9.85% for the same period. However, over the 12 months to 31 December 2025, WCM Global Growth outperformed its benchmark with a 14.74% return compared to 14.02% for the index. This performance aligns with the company’s long-term track record, having delivered an annualised return of 16.49% since its inception in 2017, comfortably exceeding the benchmark’s 13.69%.

Such consistent outperformance reflects the strength of the WCM Quality Global Growth Strategy, which has been the foundation of the portfolio since 2008. Investors who participated at the company’s IPO in 2017 would have seen their initial $10,000 investment grow to $36,753 by the end of 2025, highlighting the compounding benefits of the strategy over time.

Dividend Increase and Progressive Policy Update

In a move that will please income-focused investors, WCM Global Growth announced an increased fully franked interim dividend of 2.16 cents per share for the quarter ended 31 December 2025. This represents a continuation of the company’s progressive dividend policy, which began in 2021 and saw quarterly dividends introduced in 2023.

The Board has also provided guidance on future dividends, with planned quarterly increases throughout FY2026, culminating in a forecast dividend of 2.45 cents per share for the quarter ending 31 December 2026. These dividends are fully franked at the prevailing 30% tax rate, offering shareholders a tax-effective income stream from a portfolio of quality global companies.

Notably, the Dividend Reinvestment Plan (DRP) will not operate for the upcoming interim dividend, signalling the Board’s preference to distribute cash dividends directly to shareholders at this time.

Outlook and Market Positioning

Despite acknowledging ongoing uncertainty in global financial markets, the company expressed confidence in its investment approach, citing over a decade of consistent outperformance by WCM. AGP International Management Limited, the investment manager, has also made strides in raising the company’s market profile and improving share liquidity, factors that may support further investor interest.

Chair Valentina Stojanovska Cal thanked shareholders for their continued support and reiterated the Board’s commitment to delivering shareholder value through both capital growth and a growing income stream.