WAM Research Sets AUD 0.05 Dividend, 60% Franked, Payable October 28

Dividend Announcement Overview

WAM Research Limited (ASX – WAX) has declared an ordinary dividend of AUD 0.05 per share for the six-month period ending 30 June 2025. This dividend is 60% franked, reflecting the company's ability to pass on tax credits to shareholders, a feature that often appeals to income-focused investors seeking tax-efficient returns.

The dividend will be paid on 28 October 2025, with an ex-dividend date of 15 October 2025 and a record date of 16 October 2025. These dates are critical for investors to determine eligibility for the dividend payment.

Dividend Reinvestment Plan Details

In addition to the cash dividend option, WAM Research offers a Dividend Reinvestment Plan (DRP) that allows shareholders to reinvest their dividends into new shares at a 2.5% discount to the volume weighted average price (VWAP) of shares traded on the ASX during the ex-date and the following three trading days. This DRP is fully underwritten by new share issuance, which means that participating shareholders will receive additional shares rather than cash, potentially diluting existing shareholdings but also supporting capital growth.

The deadline for shareholders to elect participation in the DRP is 20 October 2025 at 5 – 00 pm. Notably, if shareholders do not make an election, the default is to receive the dividend in cash. There are no minimum or maximum limits on participation, making the plan accessible to all shareholders regardless of their holding size.

Implications for Investors

The 60% franking level indicates that WAM Research has paid Australian corporate tax on a significant portion of its earnings, which can be beneficial for Australian resident shareholders who can use franking credits to offset their tax liabilities. The remaining 40% of the dividend is unfranked, reflecting income that has not been subject to Australian tax.

Investors will be watching how the market responds around the ex-dividend date, as share prices typically adjust to reflect the dividend payout. The DRP's discounted share price may encourage reinvestment, potentially increasing the company's equity base over time.

While the announcement does not provide forward guidance on dividend sustainability or growth, the clear timetable and DRP terms offer shareholders flexibility in managing their income and investment strategy.