Wilson Asset Management cuts WAM Capital dividend to 8c per share due to profit shortfall
Geoff Wilson accepts responsibility for slashing the WAM Capital payout as the company struggles with inadequate profits. Shares dropped 14% following the announcement of lower distribution plans.
Wilson Asset Management chairman Geoff Wilson apologized to shareholders after WAM Capital reduced its dividend payout due to insufficient banked profits. The fund, which distributed 15.5 cents per share last year, now has a profit pool of only 5.6 cents per share compared to the previous annual payout of 7.75 cents. Consequently, WAM Capital targets a new 2026-27 distribution of just 8 cents per share. Shares in the company fell 14% on Wednesday after the decision was revealed. Wilson stated he takes full responsibility for guiding shareholders toward this lower dividend. The reduction highlights broader underperformance among actively managed funds that lacked exposure to resource sector tailwinds, exemplified by Forager Funds' Australian share fund losing 10.84% in the year to June 2026 despite holding mining stocks.
