WAM Strategic Value Confirms Fully Franked Interim Dividend and DRP Price

Dividend Update and Payment Details

WAM Strategic Value Limited (ASX:WAR) has confirmed its interim dividend for the six months ending 31 December 2025 at 3.25 cents per share, fully franked at the 30% corporate tax rate. The dividend is scheduled for payment on 29 May 2026, with a record date of 4 May 2026 and an ex-dividend date of 1 May 2026. This update refines prior announcements and provides clarity on the dividend reinvestment plan (DRP) pricing methodology.

Dividend Reinvestment Plan Pricing and Mechanics

The DRP price is set at AUD 1.13337 per share with no discount applied. The Board retains discretion to satisfy DRP participation by issuing new shares, transferring existing fully paid shares purchased on-market, or a combination of both. The price calculation methodology involves either the aggregate cost of on-market purchases less brokerage divided by shares acquired, or the volume weighted average price (VWAP) of shares traded on the ASX over the four trading days commencing on the ex-dividend date.

This approach aligns with the company's previous DRP updates, such as those for FY2025, where a similar pricing method was employed and all DRP dividends were satisfied by transferring existing shares purchased on-market. The absence of a discount to the DRP price may influence shareholder participation, especially given the current trading levels relative to net tangible assets.

Implications for Shareholders and Capital Structure

Shareholders electing to participate in the DRP will receive additional shares at the calculated price, potentially diluting existing holdings depending on uptake. The Board’s flexibility in sourcing shares for the DRP, either new issuance or on-market transfers, provides a mechanism to manage capital structure impacts. However, the company has not disclosed any minimum or maximum participation thresholds or other conditions, suggesting an open invitation for shareholders to reinvest dividends fully.

WAM Strategic Value’s consistent approach to dividends and DRP terms builds on its recent track record of strong portfolio performance and profit growth, as highlighted in prior reports showing significant profit jumps and dividend increases. For instance, the company reported a 158.6% net profit rise and increased its fully franked interim dividend earlier in the year, underpinning shareholder returns through both income and capital appreciation interim dividend raised to 3.25 cents.

The confirmation of the DRP price and dividend details also follows the company’s prior update on dividend reinvestment terms for FY2025, which set a precedent for the current pricing methodology and DRP structure updated Dividend Reinvestment Plan price. These consistent policies may reassure investors seeking steady income streams with reinvestment options.