WAM Leaders Limited (ASX: WLE), a listed investment company managed by Wilson Asset Management, has announced an increased fully franked full year dividend of 9.4 cents per share. The final dividend will be 4.7 cents per share, fully franked. This represents a fully franked dividend yield of 7.1% and a grossed-up dividend yield of 10.1%, based on the August 14, 2025, share price of $1.325. The dividend is payable on November 17, 2025, with an ex-dividend date of November 4, 2025.
The company reported an operating profit before tax of $79.0 million for the year ended June 30, 2025, compared to $20.2 million in the previous year. Operating profit after tax was $64.0 million, up from $22.3 million. Despite the increased dividend, WAM Leaders acknowledged that its investment portfolio underperformed the S&P/ASX 200 Accumulation Index, increasing 5.9% while the index rose 13.8%. This was attributed to being underweight momentum-driven stocks and the impact of the loss and sale of The Star Entertainment Group.
Lead Portfolio Manager Matthew Haupt noted that the dynamics impacting performance in FY2025 are now contributing positively, with the investment portfolio outperforming in July 2025. He highlighted a focus on quality, earnings resilience, and growth, particularly in the resources sector, supported by China’s stimulus efforts. Chairman Geoff Wilson AO emphasised that the listed investment company structure allows the company to increase the fully franked full year dividend across market cycles.
WAM Leaders has 2.6 years of dividend coverage, based on a profits reserve of 24.7 cents per share as of June 30, 2025. Since its inception in May 2016, the company has delivered 58.05 cents per share in fully franked dividends, or 82.9 cents per share when including franking credits. A Q&A webinar will be held on September 4, 2025, to provide an update on the WAM Leaders investment portfolio.