WCM Global Growth has raised its fully franked quarterly dividend to 2.45 cents per share and signalled further increases through September 2027. The planned payments imply 10.1 cents per share over the next 12 months, although future distributions remain conditional on reserves and franking credits.
- Fully franked 2.45 cents per share dividend for the September quarter
- Quarterly dividend intentions rise to 2.65 cents per share by September 2027
- 10.1 cents per share of indicated dividends over the next 12 months
- Portfolio returned 14.78% per annum after fees since June 2017
- Dividend reinvestment plan applies at a 3% discount or pre-tax NTA, whichever is lower
Quarterly Dividend Moves Higher
WCM Global Growth Limited (ASX:WQG) has lifted its fully franked dividend to 2.45 cents per share for the quarter ended 30 September 2026, extending the income-focused listed investment company's progressive payout policy. The dividend is payable on 31 December 2026 to shareholders on the register at 15 December, with the shares trading ex-dividend from 14 December.
The latest increase builds on WQG's recent dividend increase, which raised its final dividend to 2.35 cents per share and outlined further quarterly increases. The new schedule goes further: WQG's present intention is to pay 2.50 cents for the December 2026 quarter, 2.55 cents for the March 2027 quarter, 2.60 cents for the June quarter and 2.65 cents for the September 2027 quarter.
Indicated Yield Depends on Future Payments
Those intentions amount to 10.1 cents per share over the next 12 months, which WQG calculates as a 5.22% net yield or 7.46% on a gross basis including franking credits. The calculation uses a share price of $1.935 and assumes franking credits are available at the 30% corporate tax rate.
That forward-looking figure is an intention rather than a guaranteed income stream. WQG says future dividends depend on sufficient profit reserves and franking credits, as well as corporate, legal and regulatory considerations. The current quarter's distribution is fully franked, with the ASX filing recording an Australian-dollar payment of $0.0245 per share and 100% franking.
DRP Offers Discounted Reinvestment
WQG's dividend reinvestment plan will apply in full to the 2.45-cent distribution. Shares issued under the plan will be priced at the lower of a 3% discount to WQG's five-day VWAP or its pre-tax net tangible assets per share, with the calculation running from 14 to 18 December. Directors intend to participate in the plan for their own holdings.
The DRP terms matter because reinvestment at the lower of market-based pricing and pre-tax NTA can affect the number of new shares issued, and therefore the extent of any dilution for investors taking cash. Shareholders choosing reinvestment must make that election by 18 December, while the issue is scheduled for the dividend payment date.
Long-Term Portfolio Returns Remain Ahead
The dividend announcement also points to investment performance behind the payout policy. WQG's portfolio returned 14.78% per annum after fees from inception in June 2017 to 31 October 2026, ahead of the 13.08% annual return from the MSCI All-Country World Index ex Australia over the same period. The company said a $10,000 investment in the underlying portfolio would have grown to $36,338, including reinvested dividends and income, before expenses and taxes but after management and performance fees.
Those are historical portfolio figures, not a forecast of either future returns or future distributions. The immediate test for the progressive policy is whether WQG can sustain the proposed step-up while preserving the reserves and franking capacity required to support it.
Bottom Line?
WQG has made the income path more visible, but the 10.1-cent forward figure remains dependent on future profits, reserves and franking credits.
Questions in the middle?
- Can WQG maintain the proposed quarterly increases if portfolio returns or distributable reserves weaken?
- Will the DRP continue to attract enough participation to materially expand the share count over time?
- How will WQG's share price compare with pre-tax NTA when the next DRP issue price is set?