10-Feb-2025: Strong-invest-perf,-increased-FF-interim-and-special-dividend.PDF

Excerpts:

In the year to 31 December 2024, the WAM Global Limited (ASX: WGB) investment portfolio increased 23.7%^. The strong investment portfolio performance over the past two years has allowed the Board of Directors to declare an increased fully franked interim dividend of 6.5 cents per share as well as a special fully franked dividend of 4.0 cents per share.

The fully franked interim dividend of 6.5 cents per share provides an annualised fully franked dividend yield of 5.7%* and a grossed-up dividend yield of 8.1%**.

When including the 4.0 cents per share special dividend, the fully franked dividend yield increases to 7.5%* with a grossed-up dividend yield of 10.7%**, significantly greater than the average global equity market yield of 1.7%^^ and the average US equity market yield of 1.3%^^.

The investment portfolio performance contributed to an 168.0% increase in the Company’s operating profit before tax of $107.0 million (HY2024: $39.9 million) and the operating profit after tax of $74.9 million (HY2024: $26.5 million) in the Company’s FY2025 interim results.  

Notes:

 ^ Investment portfolio performance is before expenses, fees, taxes and the impact of capital management to compare to the relevant index which are before expenses, fees and taxes.

*Based on the 7 February 2025 share price of $2.27 per share.

**Grossed-up dividend yield includes the benefits of franking credits and is based on a tax rate of 30.0%.

^^Based on the MSCI World Index and S&P 500 Index dividend yield at 31 December 2024.

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I would expect some positive SP movement on the back of this announcement today. As I highlighted last week here in my Val update for WGB, with 6 to 7 years worth of dividends in their profit reserve, they were always going to keep increasing their dividends, regardless of performance, and they've also had decent portfolio performance in FY2024, which finished on December 31st for them (their financial year is the calendar year).

Disclosure: Holding.