WAM Income Maximiser Outperforms Benchmark by 6%, Raises Dividends

Strong Dividend Growth Reflects Portfolio Strength

WAM Income Maximiser Limited (ASX:WMX) has declared increased fully franked dividends for the second quarter of calendar year 2026, with monthly payments rising incrementally from 0.60 to 0.62 cents per share. Including franking credits, these dividends translate to yields between 0.86 and 0.89 cents per share, underscoring the company’s commitment to delivering sustainable income to shareholders.

Since its IPO in April 2025, the investment portfolio has delivered an impressive 12.0% total return, outperforming its blended benchmark by 6.0%. Year-to-date growth stands at 8.7%, achieved with 30.5% less volatility than the broader ASX 300 index, highlighting the portfolio’s defensive qualities amid market fluctuations.

Diversified Strategy Balances Income and Risk

The portfolio’s success is attributed to its active management approach, blending high-quality Australian equities with investment grade corporate debt. Lead Portfolio Manager Matthew Haupt emphasised the strategic shift towards increasing debt allocation, particularly investment grade bonds issued by major banks such as Commonwealth Bank, ANZ, Westpac, and Macquarie Group. This move aims to lock in higher income streams while maintaining a lower risk profile compared to pure equity exposure.

For example, while Commonwealth Bank shares yield around 4.1% on a grossed-up basis, debt instruments from the same issuer offer yields between 6.5% and 7.0%, with priority in the capital structure. This allocation adjustment has enabled the portfolio to generate attractive income with reduced sensitivity to equity market volatility.

Sustainable Income and Capital Growth Objectives

WAM Income Maximiser’s objective is to provide shareholders with a reliable monthly income stream, capital growth over the medium to long term, and capital preservation. The target income return is set at the Reserve Bank of Australia’s cash rate plus 2.5% per annum, including franking credits. The company has already exceeded this target, with an annualised fully franked dividend yield of 6.9% based on the IPO price.

The dividend reinvestment plan (DRP) remains in operation without discount, allowing shareholders to compound their investment by acquiring additional shares at market prices. The Board retains discretion over future dividends, which may fluctuate depending on market conditions, interest rates, and investment income.

Experienced Management and Transparent Reporting

The portfolio is managed by seasoned professionals with over two decades of experience in fixed income, equities, and macroeconomic analysis. Monthly updates provide transparency on asset allocation and portfolio positioning, with a current split of approximately 52% equities and 39% bonds, complemented by hybrids and cash holdings.

WAM Income Maximiser’s benchmark blends 60% of the S&P/ASX 300 Accumulation Index with 40% of the Bloomberg AusBond Bank Bill Index plus 1%, reflecting its multi-asset strategy designed to navigate varying market environments.