The S&P/ASX 200 Index (ASX: XJO) is not having a fantastic start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.36% to 7,294 points. But one ASX share is faring far worse. That would be WAM Research Limited (ASX: WAX).
The WAM Research share price is currently trading at $1.72 a share. That's down more than 3.6% from where this Listed Investment Company (LIC) closed at last Friday. Operated by the famous Wilson Asset Management (the WAM in WAM Research), this ASX LIC focuses on investing in a portfolio of small to mid-cap ASX shares with an industrial bent.
Some of its most recently disclosed holdings include Webjet Limited (ASX: WEB), Bega Cheese Ltd (ASX: BGA) and Myer Holdings Ltd (ASX: MYR).
WAM Research has also been one of the best performing LICs on the ASX in recent years. Since mid-2010, it has averaged an annual performance of 16.8% per annum (before fees and taxes).
So why is this WAM LIC trailing the ASX 200 so comprehensively today?
WAM Research trails ASX 200 after going ex-dividend
Well, fortunately for investors, there is a simple and perhaps even welcome reason. WAM Research has just traded ex-dividend on the ASX boards today. Yes, from today, new shareholders won't be entitled to WAX shares' upcoming final dividend.
This company is scheduled to fork out its second and final dividend of the year on 22 October, in 10 days time. Eligible shareholders will receive a dividend of 4.95 cents per share, fully franked. That's a small but still bankable increase from the final dividend of 4.9 cents per share last year.
Like many of WAM's ASX LICs, WAM Research has amassed a reputation as a heavyweight when it comes to dividend income. But let's see what this share price drop does for its yield.
So at an annualised payment of 9.9 cents per share against the current WAM Research share price of $1.72, this dividend is worth a yield of 5.76%. If we include the value of WAM Research's full franking credits, this yield grosses-up to a hefty 8.23%.
No one likes to see the value of their shares go down. But what has happened today to the WAM Research share price on the ASX is one of the best reasons to see a drop in value. I'm sure shareholders won't be complaining in 10 days time!
