Own WAM Capital (ASX:WAM) shares? Here's how the share price performed in 2021

Here's how WAM Capital fared over 2021…

| More on:
Man sits at computer and analyses stock graphic

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

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.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »

Frazzled couple sitting out their kitchen table trying to figure out their finances or taxes.
Dividend Investing

Here's the AMP dividend forecast through to 2026

There is some good news for AMP shareholders.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

Financial Shares

Buy this ASX All Ords stock for a 15% gain and 9% dividend yield

Goldman Sachs is tipping big returns from this stock.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.
Financial Shares

Guess which ASX All Ords stock is suspended amid takeover rumours

Another ASX share is rumoured to have received a takeover offer.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Financial Shares

Own Soul Patts shares? Here's the ASX 200 stock's result preview

What might the investment house report?

Read more »