Dividend is a portion of a company’s earnings, paid to shareholders as a reward for their capital investment in the company. Usually, dividends act as a driver for investors to buy a stock. Companies that earn profits can either pay them to their shareholders or reinvest them in the business for growth and expansion. There are different kinds of dividends that shareholders receive. Some of them are mentioned below:
- Cash Dividend: These are the most common dividends, which are paid either by the way of wire transfer or by the way of cheque or cash.
- Stock Dividend: These are rewards paid to the investors in the form of stocks, on a pro rata basis. These may be paid out for several reasons like insufficient cash with the company.
- Special Dividend: When a company builds up excess cash, it is likely to pay a special dividend outside the company policy like quarterly dividend.
- Common and Preferred Dividend: Common and preferred shares are the class of shares, on which dividends are paid.
Here in this article, we are discussing four stocks – WAM, WAX, WLE and WGB, which are managed by Wilson Asset Management Group, providing investors with exposure to an actively managed portfolio of undervalued growth companies. All these stocks trading on the Australian Securities Exchange are consistent dividend payers.
Recently, the Board of Directors of the group unveiled plans to deliver an interim dividend of 3.0 cents per share (fully franked) for FY2020. The value represents an increase of 13.2% from the fully franked interim dividend paid in the same period a year ago.
Let’s explore some of the recent announcements by these stocks related to dividend payments and portfolio investments.
WAM Capital Limited (ASX: WAM)
Dividend/Distribution: The company paid a fully franked dividend of 7.75 cents on each ordinary fully paid share on October 25, 2019 for the six-month period ended June 30, 2019, bringing the full year dividend to 15.5 cents per share. Since the beginning in 1999, WAM Capital Limited has paid dividends of 230.75 cents per share to its shareholders. 2019 Annual General Meeting of WAM Capital Limited is to be held on November 19, 2019 in order to discuss financial and other reports.
Investment Update for October: The investment portfolio of WAM Capital soared by 0.4% in October 2019. It outpaced the S&P/ ASX All Ordinaries Accumulation Index by 0.8%. Automotive repair and aftercare provider, AMA Group (ASX: AMA) and pizza delivery service Domino’s Pizza Enterprises accounted for the major contribution towards the company’s portfolio outperformance.
As on October 31, 2019, the company’s NTA after tax stood at 188.25 cents, with a market capitalisation of $1,586.8 million.
Stock Performance: The stock of WAM was trading at $2.245 (AEST 03:20 PM) on November 14, 2019, close to its 52-week high of $2.390. As per ASX, the performance of the stock witnessed a rise of 11.78% in the past 6 months and 3.24% on a year to date basis. In terms of valuation, the stock is trading at a P/E multiple of 107.210x with an annual dividend yield of 6.95%.
WAM Research Limited (ASX: WAX)
WAM Research Limited (ASX: WAX) is a listed investment company, which is an investor in equities listed on ASX. As on November 14, 2019, the market capitalisation of WAX stood at $275.7 million.
Update - Dividend/Distribution – WAX: The company paid a fully franked dividend of 4.85 cents per share on ordinary fully paid shares on October 18, 2019 for six months to June 30, 2019, bringing the full year dividend to 9.7 cents per share. Since inception in 2003, the company has paid 99.45 cents per share of dividends to its shareholders.
Investment Update: The investment portfolio of WAM Research increased by 0.7% in October 2019 and the company outperformed S&P/ASX All Ordinaries Index by 1.1%. As on October 2019, NTA after tax of the company stood at 117.98 cents.
Stock Performance: The stock of the company was trading at $1.435 on November 14, 2019 (AEST 03:20 PM), 2:15 PM). As per ASX, the stock of WAX delivered a return of 17.14% in the past 6 months and a return of 1.77% in the past 30 days. This led the stock to trade towards the 52-week high of $1.525. In terms of valuation, it is trading at a P/E multiple of 168.820x, with an annual dividend yield of 6.76%.
WAM Leaders Limited (ASX: WLE)
WAM Leaders Limited (ASX: WLE) is a listed investment company, which invests in equities listed on Australian Stock Exchange. As on November 14, 2019, the market capitalisation of the company stood at $953.95 million.
October 2019 Investment Update and Notice of AGM: WAM Leaders’ investment portfolio grew by 0.5% in October 2019, outperforming the S&P/ ASX 200 Accumulation Index by 0.9%. As on October 2019, the NTA after tax of the company stood at 122.64 cents, with gross assets of $998.0 million. The Annual General Meeting of the company is to be held on November 19, 2019 in order to discuss the financial and other reports.
Stock Performance: The stock of WLE was trading at $1.215 on November 14, 2019 (AEST 03:20 PM). As per ASX, the performance of the stock went up by 10.96% in the past 6 months and by 7.05% in the past 30 days. This had led the stock to trade towards its 52-week high of 1.220. On the valuation front, the stock is trading at a P/E multiple of 13.290x, with an annual dividend yield of 4.65%.
WAM Global Limited (ASX: WGB)
WAM Global Limited (ASX: WGB) is an investment management company, with expertise in the global and Australian equity market. As on November 14, 2019, the market capitalisation of the company stood at $457.59 million.
Dividend/Distribution – WGB: The company paid a dividend of 2 cents per share on ordinary fully paid shares on October 25, 2019, related to a period of six months to June 30, 2019.
October Investment Update: As on October 31, 2019, WAM Global Limited’s investment portfolio went down by 0.5%. The NTA after tax of the company stood at 232.56 cents, with listed equities of $467.3 million.
Stock Performance: The stock of WAM Global Limited was trading at $2.170 on November 14, 2019 (AEST 03:20 PM), up by 0.463% on the previous day. As per ASX, the stock of WGB gave a return of 10.77% on a YTD basis and a return of 2.86% in the past 30 days. The stock is trading at a P/E multiple of 20.04x.
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