The WAM Capital Limited (ASX: WAM) dividend is nearing an important milestone today.
However, this is not having a positive effect on the investment company's shares as they slip 0.72% to $2.085 during late-morning trade.
Let's take a look what's the latest with WAM shares.
WAM shares set to go ex-dividend
The WAM board declared an interim dividend of 7.75 cents to eligible shareholders following the company's half-year results in February.
However, to lock in the dividend, investors need to buy WAM shares before the market close today. The ex-dividend date is on Monday 6 June.
It's worth noting though that historically when a company reaches its ex-dividend day, its shares tend to backtrack on the day. This is because the company's value is often worth a tad less after paying out a portion of its profits to shareholders.
When can WAM shareholders expect payment?
For those who are eligible for the WAM interim dividend, shareholders will receive a payment on 17 June.
The dividend is also fully franked. Franking credits, or imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company.
Essentially, the company is paying the tax on the dividends received by the shareholders.
In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.
There is a 2.5% DRP discount rate, and the price will be determined by a daily volume-weighted average (VWAP).
The last election date for shareholders to opt-in to the DRP is on 9 June.
WAM share price snapshot
Since the beginning of 2022, the WAM share price has lost 6% and is down 5% in the last 12 months.
The company's shares reached a 52-week low of $2.00 last month, before recovering some ground in the following weeks.
WAM commands a market capitalisation of roughly $2.26 billion and has a trailing dividend yield of 7.67%.
