WAM Microcap Limited has announced a fully franked dividend of AUD 0.0535 per share for the half-year ending December 2025, offering shareholders a dividend reinvestment plan with a 2.5% discount.
- Ordinary fully franked dividend of AUD 0.0535 per share
- Dividend payable on 29 May 2026 with ex-date 15 May 2026
- Dividend Reinvestment Plan (DRP) available with 2.5% discount
- DRP shares to be newly issued and rank equally from issue date
- No approvals required for dividend payment
Dividend Announcement Overview
WAM Microcap Limited (ASX: WMI), a specialist investment trust focused on microcap companies, has declared an ordinary dividend of AUD 0.0535 per share for the six months ending 31 December 2025. This dividend is fully franked, reflecting the company’s ability to distribute profits with attached Australian tax credits, which is a positive signal for income-focused investors.
The dividend will be paid on 29 May 2026, with an ex-dividend date of 15 May 2026 and a record date of 18 May 2026. These dates are critical for shareholders to determine eligibility for the dividend payment.
Dividend Reinvestment Plan Details
WAM Microcap continues to offer its Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into new shares rather than receiving cash. For this dividend, the DRP carries a 2.5% discount on the volume weighted average price (VWAP) of shares traded over the four trading days starting from the ex-dividend date. This discount provides an incentive for shareholders to increase their holdings at a slight premium to market value.
The DRP shares will be newly issued and rank pari passu with existing shares from the issue date of 29 May 2026. Shareholders who wish to participate must lodge their election by 5:00 pm on 20 May 2026. If no election is made, the default option is to receive the dividend in cash.
Implications and Market Context
This dividend announcement reflects WAM Microcap’s ongoing commitment to delivering shareholder value through income distributions while providing flexibility via the DRP. The fully franked nature of the dividend is particularly attractive in the current tax environment, enhancing after-tax returns for Australian investors.
Investors should note that no external approvals were required for this dividend, indicating a smooth process and confidence in the company’s financial position. The DRP discount and issuance of new shares may have a modest dilutive effect, but it also supports capital growth and reinvestment in the company’s portfolio.
Overall, this dividend declaration aligns with WAM Microcap’s strategy of steady income generation combined with capital appreciation potential in the microcap sector.
Bottom Line?
WAM Microcap’s fully franked dividend and attractive DRP terms set the stage for steady income and potential capital growth ahead.
Questions in the middle?
- How sustainable is WAM Microcap’s dividend given current market conditions?
- What level of shareholder participation is expected in the DRP this cycle?
- Will the DRP discount impact share price performance post-issue?