After a strong performance, this ASX listed fund is now paying a handy dividend yield

Listed investment fund WAM strategic Value Ltd (ASX: WAR) has boosted its dividend to a grossed up 8.1% following strong performance in its underlying investments.

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.

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Motley Fool contributor Cameron England 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.