WAM Microcap Delivers Strong Returns While Maintaining a High Dividend Yield

WAM Microcap Limited is a listed investment company managed by Wilson Asset Management and traded on the Australian Securities Exchange. The company invests in a portfolio of undervalued, high growth micro-cap companies with market capitalisation below $300 million at the time of investment. Wilson Asset Management manages $6.0 billion in funds under management.

Wam Microcap Limited (ASX: WMI)

Wam Microcap Limited (ASX: WMI), on 7 July 2026, released its June 2026 Investment Update, in which it reported a Net Tangible Assets before tax of 128.08 cents per share. The company also disclosed that its net current and deferred tax asset/(liability) position stood at 2.81 cents per share as of June 2026.

During June, the company’s investment portfolio showed positive returns and it also outperformed the S&P/ASX Small Ordinaries Accumulation Index. Strong performance from business-to-business wholesaler and distributor Stealth Group Holdings and Australian sovereign artificial intelligence infrastructure provider SharonAI Holdings contributed significantly to the portfolio's outperformance.

WAM Microcap is distributing a large portion of its profits to shareholders through dividends. The company highlighted its annualised fully franked interim dividend of 10.7 cents per share which represents an annualised dividend yield of of 7.23% based on the current share price of $1.465 and a grossed-up yield of 10.7%. Since its inception, the company has distributed 80.7 cents per share in dividends, which increases to 115.3 cents per share after including the value of franking credits. Additionally, the company maintains a profits reserve of 49.8 cents per share which it built in previous years.

The company's assets reported to be $360.9 million, Meanwhile the investment portfolio has delivered an annualised return of 14.4% since inception in June 2017, compared with 7.0% for the S&P/ASX Small Ordinaries Accumulation Index. 

Among the key portfolio contributors, SharonAI Holdings announced a significant six-year strategic compute collaboration with NVIDIA  to enable 72 MW of new data centre capacity in Australia. Meanwhile, Stealth Group Holdings reported a preliminary unaudited FY2026 net profit after tax of $5.8 million.

Outlook:

Stealth Group Holdings reaffirmed its guidance for another record year. The company restated its long-term targets of $500 million in annual sales and an EBITDA margin of 8% to 12% by FY2028. Additionally, SharonAI Holdings plans to deploy NVIDIA's DSX AI factory design and scale up to 40,000 Grace Blackwell GB300 graphics processing units (GPUs) to support demand from AI startups, enterprises, and university researchers.

(Source: Company Announcements)