Hoping to secure the next WAM Capital dividend? Read this

a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.a man with a wry smile is behind ascending piles of coins as he places another coin on top of the tallest stack.

The WAM Capital Limited (ASX: WAM) dividend is nearing an important milestone today.

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?

Before you consider WAM, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and WAM wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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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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