As one of the largest Listed Investment Companies (LICs) on the ASX, the WAM Capital Limited (ASX: WAM) share price is certainly a well-watched one. After all, this LIC has returned an average of 16.4% per annum since its inception in 1999 (excluding fees and taxes).
But if you own WAM Capital shares, you might be wondering how this LIC measured up to this high watermark over 2021. Well, look no further, because that’s what we’ll be checking out today.
WAM Capital is a LIC that focuses on investing in “the most compelling undervalued growth opportunities in the Australian market”. According to Wilson Asset Management (the WAM in WAM Capital), some of its current top holdings include Aristocrat Leisure Limited (ASX: ALL), Brickworks Ltd (ASX: BKW) and Carsales.com Ltd (ASX: CAR). It was also making waves last year by venturing into the acquisition of whole businesses. WAM Capital acquired Amaysim Australia (ASX: AYS) last year, as well as the Concentrated Leaders Fund (ASX: CLF) and Contango Income Generator Limited (ASX: CIE).
So how did WAM Capital fare on the ASX over 2021?
But let’s get down to the numbers. So in terms of WAM’s raw share price, this LI started 2021 at $2.23 a share. Last week, it finished up at… drumroll…. $2.23 a share. Yep, zero capital growth for WAM Capital shareholders in 2020. And its net tangible assets (NTA) per share didn’t move too much either. On 31 December 2020, this LIC had $1.81 in NTA per share. As of 30 November, it was at $1.86 per share.
But, as Wilson Asset Management fans would know, share price appreciation is not the be-all and end-all for WAM’s LICs. They also have a prominent reputation for hefty dividend payments. And WAM Capital is no different. This LIC paid out two dividends last year, both worth 7.75 cents per share and both fully franked. That annual 15.5 cents per share dividend was consistent with what the company has been dishing out since 2018.
Plugged into the opening (and closing) WAM share price of 2021, and we get a yield of 6.95%, or 9.93% grossed-up with full franking. And that’s pretty much the return investors enjoyed last year from their WAM Capital shares, seeing as the WAM share price itself did a whole lot of not much.
At the last WAM Capital share price, this LIC had a market capitalisation of $2.02 billion.