WAM Income Maximiser Raises Fully Franked Dividends to Yield 7.1%

Dividend Yield Climbs to 7.1% on Back of Portfolio Strength

WAM Income Maximiser Limited (ASX:WMX) has announced a steady increase in its fully franked monthly dividends for the final quarter of 2026, with payments set at 0.66 cents per share in October, rising to 0.68 cents in December. Including franking credits, these dividends translate to an annualised yield of 7.1% on the average pre-tax net tangible assets (NTA), underscoring the company’s commitment to delivering reliable income streams to shareholders.

Chairman Geoff Wilson AO highlighted the significance of this milestone, noting that the LIC’s first full financial year has yielded strong returns alongside lower volatility compared to the broader equity market. The combination of monthly fully franked dividends and capital growth remains a key attraction for income-focused investors amid evolving market dynamics.

Robust Portfolio Performance Outpaces Benchmark with Less Risk

Since its April 2025 inception, WAM Income Maximiser’s investment portfolio has delivered an impressive 17.8% per annum return, outperforming its benchmark by 7.6% annually. The portfolio’s volatility is measured to be 25.9% lower than the S&P/ASX 300 Accumulation Index, reflecting a more stable risk profile for investors. This performance is notable given the LIC’s multi-asset approach, blending equities and investment-grade corporate debt.

Lead Portfolio Manager Matthew Haupt explained that the team has been actively adjusting the portfolio to navigate ongoing market uncertainty. This has involved increasing exposure to debt instruments relative to equities and extending the duration of the debt holdings. The equity allocation remains focused on sectors expected to benefit from a potential easing in interest rates, in line with expectations of slowing domestic demand and disinflation.

Strategic Asset Allocation Reflects Market Conditions

At 30 June 2026, the portfolio was split approximately 60% equities and 40% debt, with the debt portion primarily investment grade. The debt segment carries a yield to maturity of 6.1% and a duration of 6.9 years, while the equity portfolio offers a forward price-to-earnings ratio of 18.3x and projected earnings growth of 8.3% over the next year. The fixed income holdings are fully fixed rate, enhancing income stability.

This allocation strategy aims to balance income generation with capital preservation, a priority as the investment team anticipates further monetary policy easing over time. The portfolio’s reduced volatility compared to the ASX 300 benchmark suggests this approach is achieving its risk mitigation objectives.

Dividend Reinvestment Plan Supports Shareholder Choice

WAM Income Maximiser continues to offer a Dividend Reinvestment Plan (DRP) without discount, allowing shareholders to reinvest their monthly fully franked dividends at a volume weighted average market price calculated over four trading days following the ex-dividend date. This provides flexibility for investors seeking to compound returns or increase their holdings without transaction costs.

The company has set key dividend dates for the last quarter of 2026, with ex-dividend dates falling between mid-October and mid-December, and payment dates at the end of each respective month.