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%.
The post Hoping to secure the next WAM Capital dividend? Read this appeared first on The Motley Fool Australia.
Should you invest $1,000 in WAM right now?
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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