WAM Capital Limited (ASX:WAM) Reports Strong Portfolio Performance and Maintains Interim Dividend
Investment Portfolio Performance
WAM Capital Limited (ASX: WAM) announced its investment portfolio outperformed the S&P/ASX All Ordinaries Accumulation Index by 8.0% and the S&P/ASX Small Ordinaries Accumulation Index by 9.4%, increasing by 14.9% during the six months to 31 December 2024. For the 2024 calendar year, the portfolio grew by 30.2%, surpassing the S&P/ASX All Ordinaries Accumulation Index by 18.8% and the S&P/ASX Small Ordinaries Accumulation Index by 21.8%.
Financial Performance
The strong portfolio performance contributed to a 40.3% increase in operating profit before tax to $208.7 million and a 40.6% rise in operating profit after tax to $149.8 million for the half-year. Profits reserve stood at 24.9 cents per share as of 31 January 2025.
Dividend Declaration
The Board of Directors declared an interim dividend of 7.75 cents per share, partially franked at 60%, payable on 30 April 2025. This dividend offers an annualised yield of 9.6% and a grossed-up yield of 12.1%.
Executive Comments
Chairman Geoff Wilson AO stated, “It has been pleasing to see another strong result from the WAM Capital investment team, with the portfolio continuing to outperform both the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index. This outperformance has allowed the Board of Directors to maintain the high partially franked interim dividend of 7.75 cents per share.”
Lead Portfolio Manager Oscar Oberg added, “The investment team and I are pleased to have delivered strong investment portfolio performance for our shareholders. WAM Capital has outperformed both indexes despite a challenging environment, marked by the continued underperformance of small-cap companies. With a favourable interest rate environment, the investment portfolio is well positioned to capture opportunities in 2025.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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