Financial Services

Why this stock just boosted its interim dividend by 12%

Mon 13 Feb 23, 12:55pm (AEDT)
A hand belonging to a man in a suit hands over hundreds of dollars of Australian cash to an unseen recipient
Source: iStock

Key Points

  • WEL shareholders to receive 4.5cps, up 12.5%
  • Move comes on stronger than expected 2H profits after tax
  • WAM’s investment portfolio increased 8.8% in 2H CY22, outperforming the ASX 200 Accumulation Index by 9.9%

After tax, WAM Leaders (ASX:WLE) made $85.1 million in the second half of last year, a 10.5% increase year-on-year (YoY).

In turn, the company announced on Monday it is boosting its dividend back to shareholders. 

Shareholders will now receive a dividend from WAM of 4.5c per share, a 12.5% increase. 

Strong performance through uncertainty 

“The WAM Leaders investment team has generated strong performance for shareholders in all market cycles,” WLE Chairman Geoff Wilson said. 

“The 12.5% increase in the fully franked interim dividend during an uncertain period for equity markets has been achieved through…profits reserves available.”

Profit reserves as at 31 December 2022 reflected 41.1cps. 

A look at WAM's six month charts
A look at WAM's six month charts

What are they investing in? 

The company’s investment portfolio outperformed the ASX 200 Accumulation Index by 9.9% in the second half of last year, as well as increasing in value by 8.8%. 

WAM’s current top 20 shareholdings are in familiar names like Coles (ASX:COL) and Woolworths (ASX:WOW), as well as Newcrest (ASX:NCM), Santos (ASX:STO) and the “big 4” banks (which is now the “big 5," if you count Macquarie, but they do not make WAM’s top 20 list). 

“The market has been in dislocation which has been challenging but allowed us to build positions in great companies at attractive valuations,” WLE lead portfolio manager Matthew Haupt said. 

“We expect the market is near a narrative and positioning inflection point, which will provide a tailwind for the investment portfolio over 2023.” 

Livewire Markets' Chris Conway interviewed Matthew Haupt earlier this month

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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