WAM Income Maximiser Trades at Premium Amid Dividend Growth Uncertainty
WAM Income Maximiser has outperformed its benchmark since its April 2025 IPO, delivering solid capital growth and initiating fully franked dividends, while trading at a premium to net tangible assets.
- Investment portfolio outperformed benchmark with 6.4% growth since IPO
- Gross running yield of 4.7% including franking credits as of July 2025
- Inaugural fully franked monthly dividend declared at 0.20 cents per share
- Shares trading at a premium to net tangible assets reflecting strong demand
- Dividend guidance set to gradually increase towards target income return
Strong Early Performance
WAM Income Maximiser (ASX, WMX), a newly listed investment company managed by Wilson Asset Management, has made a promising start since its April 2025 IPO. The company quickly deployed capital ahead of schedule into a diversified portfolio of ASX300 equities and investment grade corporate debt, aiming to blend equity upside with stable income streams. This strategy has paid off, with the portfolio delivering a 6.4% increase in value by the end of July 2025, outperforming its benchmark that combines equity and debt indices.
Income and Dividend Progress
One of the key attractions of WAM Income Maximiser is its focus on providing shareholders with monthly fully franked dividends. The company declared its inaugural dividend of 0.20 cents per share in July, with plans to gradually increase this payout over the first year to meet its target income return of the Reserve Bank of Australia (RBA) Cash Rate plus 2.5% per annum, including franking credits. The gross running yield of the portfolio stands at a healthy 4.7%, reflecting the income-generating quality of its holdings.
Market Reception and Portfolio Composition
Investor appetite for WAM Income Maximiser shares remains strong, with the stock trading at a premium to its net tangible assets (NTA) since listing. This premium signals confidence in the management team’s ability to deliver consistent income and capital growth. The portfolio is weighted 60% towards corporate debt and 40% in equities, focusing on companies with strong capital management and sustainable distributions. This balanced approach aims to mitigate volatility while capturing growth opportunities.
Looking Ahead
Chairman Geoff Wilson AO highlighted the team’s success in capital deployment and tactical equity increases that have driven recent outperformance. The portfolio is positioned to benefit from emerging market themes, with the investment team actively seeking compelling opportunities across both debt and equity markets. As WAM Income Maximiser continues to build profit reserves and franking credits, shareholders can expect a steady progression towards the company’s income targets.
Bottom Line?
WAM Income Maximiser’s early momentum sets a strong foundation, but investors will watch closely as dividend growth and market conditions unfold.
Questions in the middle?
- Will WAM Income Maximiser sustain its premium to NTA amid changing market dynamics?
- How will the balance between equities and corporate debt evolve in response to interest rate shifts?
- What impact will future profit reserves and franking credits have on dividend growth pace?
