The WAM Microcap Ltd (ASX: WMI) share price is in focus after the company declared a fully franked final dividend of 5.35 cents per share for FY26, bringing the total fully franked dividend for the year to 10.7 cents per share. The investment portfolio delivered a tiny 0.1% return for the year, lagging its benchmark.
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What did WAM Microcap report?
- Fully franked final dividend of 5.35 cents per share, taking the full year payout to 10.7 cents per share
- Fully franked dividend yield of 7.6% (grossed-up, 10.9%) based on 19 August 2026 share price
- Investment portfolio return of 0.1% for FY26, compared to S&P/ASX Small Ordinaries Accumulation Index return of 8.1%
- Operating loss before tax of $2.4 million (previous year: profit of $59.7 million)
- Operating loss after tax of $0.1 million (previous year: profit of $43.6 million)
- Dividend Reinvestment Plan (DRP) available with a 2.5% discount for the final dividend
What else do investors need to know?
WAM Microcap has now paid a total of 80.7 cents per share in fully franked dividends since listing in 2017, or 115.3 cents per share including the benefit of franking credits. The 2026 result reflects a tough year, driven by underperformance in micro-cap industrials and limited exposure to the booming resources sector.
Despite this, WAM Microcap continues to focus on identifying undervalued micro-cap companies, aiming to deliver capital growth and income to shareholders. The portfolio remains diversified across sectors including industrials, consumer discretionary, and technology.
What did WAM Microcap management say?
Chairman Geoff Wilson AO said:
We are pleased to declare a fully franked final dividend of 5.35 cents per share for WAM Microcap shareholders, taking the fully franked full year dividend to 10.7 cents per share. The benefits of the listed investment company structure, together with the profits reserve available, have enabled the Board to continue to provide fully franked dividends to shareholders through market cycle.
Since listing in June 2017, WAM Microcap has delivered 80.7 cents per share in fully franked dividends to shareholders, or 115.3 cents per share when including the value of franking credits.
What's next for WAM Microcap?
Looking ahead, management remains positive about the long-term potential of the micro-cap sector, believing that the company's focus on under-researched and undervalued names will reward patient investors. The portfolio team continues to seek stocks they believe the market is undervaluing, backed by fundamental research.
WAM Microcap will hold a Q&A webinar on 22 September 2026 for investors to discuss these results and outlook with the portfolio team.
