This WAM ASX LIC just posted record profits and dividends

WAM Global has just reported record profits and dividends…

| More on:
A man happily kisses a $50 note scrunched up in his hands representing the best ASX dividend stocks in Australia today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Wilson Asset Management (WAM) ASX Listed Investment Company (LIC) WAM Global Ltd (ASX: WGB) shares are rising today, up 0.75% at the time of writing to $2.67 a share.

This move comes as the company unveiled its FY2021 full-year earnings results this morning. And it makes for some interesting reading.

WAM Global is one of the more recent WAM ASX LICs to hit the share market, only listing back in 2018. But in the past 3 or so years, this company has certainly made a reputation for itself as a top performer in the ASX LIC space. Its investment portfolio has managed to deliver an average return of 16% per annum over the past 2 years, and 30.7% over the past 12 months.

ASX LIC WAM Global delivers record profits, ups dividends

Today's numbers probably won't do anything to dent this reputation either. WAM Global reported that it has delivered a record operating profit before tax of $137 million for FY2021. That's up quite a bit from FY2020's profit before tax of $7.1 million. After tax, the company reported a profit of $95.9 million. That's also up substantially from FY2020's $5 million profit after tax.

WAM Global's management tells us that including the dividends paid out, as well as the Net Tangible Asset (NTA) to share price gap of WAM Global narrowing from 18.2% at the start of FY21 to 3.9% at its conclusion, total shareholder return for the financial year stands at 45.9%.

WAM Global had previously flagged that it would be paying out an annual dividend of 10 cents per share in FY2021. And today's results have confirmed it. Investors will be receiving the 5 cents per share final dividend (which comes fully franked) on 4 November this year. That's a 25% increase on FY2020's final dividend of 4 cents per share.

WAM Global will be paying out 10 cents a share for FY21. This represents a 42.9% increase in dividend payments from FY2020's 7 cents per share.

Some of this LIC's top shares

The company also gave investors a glimpse into its current investment portfolio (as of 30 June anyway). WAM Global's largest holding is Irish pharmaceutical company Icon plc (NASDAQ: ICLR), at 3.9% of the portfolio. Other significant holdings include payments giant Visa Inc (NYSE: V) and Avantor Inc (NUSE: AVTR). As well as Electronic Arts Inc. (NYSE: EA) and Chinese e-commerce titan Tencent Holdings Ltd (HKG: 0700).

At the current WAM Global ASX share price, the company has a market capitalisation of $627.5 million. With investors receiving 10 cents per share in dividends in 2021, WAM GLobal's ASX shareholders can expect a forward dividend yield of 3.75% on current pricing, or 5.35% grossed-up with full franking.

Motley Fool contributor Sebastian Bowen owns shares of Visa and WAM Global Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Electronic Arts. 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 Bruce Jackson.

More on Share Market News

A man with grahpics of robot arms, indicating a share price movement in ASX robotics and tech companies
Share Market News

Here's how the ASX 200 market sectors stacked up this week

Tech shares led the pack for a second week, clocking a near 10% gain over the fortnight.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX had a very pleasant end to the trading week this Friday.

Read more »

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Share Gainers

The Brainchip share price is up 213% this month. Is Nvidia to blame?

The small cap Aussie tech stock is going bananas in 2024.

Read more »

Three exuberant runners dash towards the camera. One raises her arms in triumph; another jumps in the air with arms raised. The third runner gives a satisfied smile.
Share Market News

Here's how these 3 ASX 200 shares just earned substantial broker upgrades

Top brokers have a bullish 2024 outlook for these three ASX 200 shares.

Read more »

Digital rocket on a laptop.
Broker Notes

Is the Nvidia share price on course to reach US$1,400?

You betcha, says one analyst.

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Accent, Austal, Newmont, and Sandfire shares are plunging today

These ASX shares are ending the week in the red. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Aussie Broadband, Australian Ethical, Jumbo, and Vulcan are racing higher

These ASX shares are ending the week on a high. But why?

Read more »