The fund's managers said in a statement to the ASX on Wednesday that its investment portfolio had increased in value by 14.9% for calendar 2025, and 9.8% for the second half of the year.

Profits looking good

WAM Strategic value also delivered a 158.6% increase in operating profit to $12.8 million after tax for the first half, while total shareholder return was 9.4%, or 10.7% including the value of franking credits.

Chairman and lead portfolio manager Geoff Wilson AO said:

The investment portfolio's performance builds on the strong performance of 2023 and 2024, as the investment portfolio increased 15.9% per annum in the two-year period and 14.5% per annum over the three-year period, delivering shareholders consistent investment portfolio returns. One of our priorities is for the company's share price to fully reflect its net tangible assets (NTA) value. We are confident that our experience in managing listed investment companies (LICs) will deliver this. Investing in undervalued asset plays can take time to be recognised by the market and we believe the portfolio is well positioned to capitalise on opportunities in 2026 and beyond.

The fund said its portfolio performance in the December half year was driven by holdings in listed investment companies with exposure to global equities including Regal Partners Global Investments Ltd (ASX: RG1), Pengana International Equities Ltd (ASX: PIA) and Regal Asian Investments Ltd (ASX: RG8).

The fund's statement to the ASX went on to say:

In the six months to 31 December 2025, the investment portfolio's allocation to equities was 82.7% at 31 December 2025, providing a weighted average return of 11.8% and the investment portfolio allocation to cash and cash equivalents was 17.3% at 31 December 2025.

The fund will pay a fully-franked dividend of 3.25 cents, up from 3c for the same period last year, which equates to a dividend yield of 5.7% or 8.1% when franking credits are included.

The ex-dividend date is May 1 with the dividend to be paid on May 29. The fund's dividend reinvestment plan is in operation.

The fund said since inception, it has paid 18.75 cents per share in fully franked dividends to shareholders, and 26.8 cents per share when including the value of franking credits.

WAM Strategic value shares were changing hands for $1.16 on Wednesday morning, up 1.3%.

The fund said its net tangible asset backing was $1.30 per share as at December 31. WAM Strategic Value was valued at $206.2 million at the close of trade on Tuesday.

The post After a strong performance, this ASX listed fund is now paying a handy dividend yield appeared first on The Motley Fool Australia.

It has already displayed longevity. The company has been listed on the ASX since 1903. It has survived through world wars, global pandemics, financial crashes and so on.

But that's old history.

These are three reasons why the company is a very useful ASX dividend share:

Diversified portfolio

Soul Pattinson first started as a pharmacy business.

But now it's a very diversified investment house. That means it operates by predominantly by investing in other businesses.

It has a portfolio of large and smaller ASX shares.

Some of the biggest holdings are TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Pengana Capital Group Ltd (ASX:PCG), Tuas Ltd (ASX: TUA), Pengana International Equities Ltd (ASX: PIA), Bank of Queensland Limited (ASX: BOQ), Bki Investment Co Ltd (ASX: BKI), Commonwealth Bank of Australia (ASX: CBA) and Bailador Technology Investments Ltd (ASX: BTI). There are many more.

The company also has a growing portfolio of unlisted and non-ASX shares. Examples of that include the electrical parts business Ampcontrol, Apex Healthcare, financial services, agriculture, swimming schools, resources and luxury retirement living.

Reliable cashflow funds dividends

With a contrarian mindset, Soul Pattinson has designed its portfolio to be defensive. The ASX dividend share says that its portfolio provides "reliable cash through market cycles which serves to protect downside in market corrections."

Many of the ASX dividend share's investments pay an annual dividend or distribution to shareholders.

Each year, Soul Pattinson receives all of that cash flow. It pays for its operating expenses and then it pays a large portion of that cash flow out as a dividend to investors. In FY21, it decided to pay 82.3% of its regular operating cash flows as a dividend.

With the bit of retained cash flow, the business invests in more opportunities. The company has a goal of paying steady and growing dividends.

Soul Pattinson has managed to grow its dividend every year since 2000. It has actually paid a dividend every year since it was listed in 1903.

Dividend yield

Soul Pattinson doesn't have the biggest dividend yield on the ASX. But it does offer a payout that is substantially more than what people can get from a bank savings account.

Based on the trailing dividends, Soul Pattinson has a grossed-up dividend yield of 3.4%.

The post 3 reasons why Soul Pattinson (ASX:SOL) is a strong ASX dividend share idea appeared first on The Motley Fool Australia.

Since May, investors have been able to apply for shares in WAM Strategic Value for a placement price of $1.25 a share. Well today, those shares are trading on the market. So how is the old IPO going for WAM?

Well, not too badly, but perhaps nothing to write home about. WAR shares hit the ASX this morning and opened for $1.26 a share, 1 cent or 0.8% above its placement price. And that's where the share price is hovering at, at the time of writing. So, this price gives WAM Strategic Value a market capitalisation of $226.8 million. That comes from WAM telling investors there will be 180 million WAR shares on the ASX upon its float.

What is WAM Strategic Value?

The latest in WAM's LIC stable, WAM Strategic Value is headed up by WAM founder Geoff Wilson himself. In the company's ASX WAR prospectus, he tells investors that WAM Strategic Value will focus on "identifying and investing in $1 of assets for 80 cents". The LIC will do this by "[taking] advantage of market mispricing opportunities, including securities trading at discounts to assets or net tangible assets (NTA), corporate transactions and dividend yield arbitrages with franking credit benefits".

Here's some more of what Wilson told investors in its prospectus:

Our experience and expertise in managing closed-end vehicles provides us with a unique methodology to identify and benefit from LIC and LIT market mispricing opportunities and engage proactively with boards, management teams, investors and other stakeholders. This primary focus will be complemented by other market mispricing opportunities arising within the corporate sector. Such as takeovers or capital raisings, where we are able to utilise our position as an institutional investor responsible for more than $4 billion of shareholder capital.

ASX hears the drums of WAR

So put simply, WAM Strategic Value is primarily going to be in the business of buying other LIC and Listed Investment Trust (LIT) assets for less than they are actually worth. So what kind of leads do we have on this new LIC? It has presumably invested in a fair bit so far with its $200 million-plus backing, after all.

Well, WAM has yet to give us an official update. But we can gather some valuable information from other sources. The Magellan High Conviction Trust (ASX: MHH) seemed to be an early target. As my Fool colleague Mitchell Lawler flagged at the time, Magellan's High Conviction Trust may have had some interest from WAM Strategic Value. Its units were trading at a 12.2% discount to their underlying NTA value back then. The High Conviction Trust unit price has since rallied to somewhat close this NTA gap.

But some additional ASX releases that came out alongside the IPO today give us a broader picture. According to these ASX releases, WAR shares might represent ownership in LICs and LITs including NAOS Small Cap Opportunities Company Ltd (ASX: NSC) and Pengana International Equities Ltd (ASX: PIA). As well as Templeton Global Growth Fund Ltd (ASX: TGG) and Westoz Investment Company Limited (ASX: WIC).

We'll have to wait for WAM's first investment updates to find out more about this new LIC. But the picture is now a lot clearer on ASX's new WAR LIC.

The post WAM's WAR on the ASX! Wilson's new LIC hits the share market appeared first on The Motley Fool Australia.

WAM Capital profit numbers

WAM Capital reported a 176.9% increase in its operating profit after tax to $70.4 million in the six months to 31 December 2019. Chairman Geoff Wilson said the operating profit was reflective of the solid investment portfolio over the period.

The results of LICs can seem confusing because they deliver investment returns, a return of -5% can seem bad in a absolute dollar sense compared to last year's result, whilst generating a return of 10% in one year and 20% in another year shows profit doubling in dollar terms. LIC profits aren't consistent like normal operating businesses.

Looking at the portfolio, over the six months to 31 December 2019 the WAM Capital portfolio returned 8.9% before expenses, fees and taxes, outperforming the S&P/ASX All Ordinaries Accumulation Index by 5.3%. Over the past year WAM Capital's gross portfolio return was 22.4%, underperforming the index by 1.7%.

The WAM Capital total shareholder return for the six months to December 2019 was 15.2% after the portfolio return and an increase in the share price premium to net tangible assets (NTA) per share.

Some of WAM Capital's strongest performers included mining technology company Codan Limited (ASX: CDA) which went up 114.7%, payment solution provider EML Payments Ltd (ASX: EML) which went up 55.3% and mortgage broking company Australian Finance Group Ltd (ASX: AFG) which went up 73.3%.

At the end of December 2019, WAM Capital's positions with a weighting of more than 2% were Brickworks Limited (ASX: BKW), Seven Group Holdings Ltd (ASX: SVW) and Pengana International Equities Ltd (ASX: PIA).  

WAM Capital dividend

The WAM Capital Board decided to maintain the dividend and declared an interim dividend of 7.75 cents per share with a 2.5% discount for the dividend re-investment plan.

As always, WAM Capital reminded investors that it's committed to paying a stream of fully franked dividends to shareholders as long as the company has sufficient profit reserves and franking credits and it is within prudent business practices.

The annualised dividend currently offers a grossed-up dividend yield of around 10%.

Is the WAM Capital share price a buy?

WAM Capital has been a solid performer since inception over two decades ago, though the last decade hasn't been quite as good. However, its portfolio has been very good over the past year and it's well diversified. 

It offers a very big dividend yield in this low interest environment. However, with a profit reserve of 10.6 cents it has less than 12 months of dividends banked, assuming markets don't go negative.

When you add the small profit reserve to the fact that WAM Capital is now trading at an expensive premium to its NTA, it makes other dividend shares like WAM Leaders Ltd (ASX: WLE) seem more attractive and sustainable.

The post HY20 result: This dividend share has a 9.8% dividend yield appeared first on The Motley Fool Australia.

But I've found two ASX listed investment companies (LICs) that I don't believe to be yield traps and both are currently offering grossed-up yields around 10%

WAM Research Limited (ASX: WAX)

This LIC is run by Wilson Asset Management – who are famous for their stable of LICs with big dividends. WAM Research is no different, offering a dividend of 9.7 cents per share, which translates to a grossed up yield of 10.01% on current prices.  In addition, WAM Research has also delivered an annualised average return of 16.7% (including dividends) since 2010, which is likely to be a contributing factor to this LIC's current share price premium of 13% over the net tangible assets (NTA) per share. WAM Research invests in small- to mid-cap ASX stock that its management view as likely to appreciate – some of its current top holdings include the A2 Milk Company Ltd (ASX :A2M) and Xero Ltd (ASX: XRO)

Pengana International Equities Ltd (ASX: PIA)

This LIC is run by Pengana Capital Group Ltd (ASX: PCG) and looks beyond our shores to gather a portfolio of 30–50 global companies that are 'ethically-screened'. This means that any company involved in gambling, animal testing, tobacco or fossil fuels are excluded from PIA's investment mandate. Currently, 50% of the LIC's investment portfolio is in US-based companies, with a further 25% in Europe and 9% in Emerging Markets. Some top companies include Tencent, Cigna Corp and AON.

Pengana International Equities currently pays a 7 cent per share dividend, which gives it a grossed-up yield of 10% on current prices.

Foolish takeaway

Both of these LICs (in my opinion) would make attractive investment for any income investor or anyone who loves a big yield in general. Although I wouldn't count on payout consistency if there was a share market crash, it might be a good time to make some hay while the sun is shining.

The post 2 ASX shares with 10% dividend yields appeared first on The Motley Fool Australia.