WAM Microcap leans on dividends as tech weakness tempers strong long-term returns

WAM Microcap Ltd. ( (AU:WMI) ) has provided an update.

WAM Microcap reported net tangible assets per share of 146.07 cents before tax at January 2026 and assets of $409.7 million, with its investment portfolio returning 16.2% per annum since inception versus 8.7% for the S&P/ASX Small Ordinaries Accumulation Index. The company continues to emphasise income, with a fully franked full-year dividend of 10.6 cents per share equating to a 6.2% yield and 8.9% grossed-up yield, supported by a profits reserve of 55.4 cents per share and cumulative fully franked dividends of 75.35 cents per share since listing.

Portfolio performance in January was mixed, with automotive parts distributor Supply Network boosting returns after upgrading earnings guidance and declaring a strong fully franked interim dividend that underscored its balance sheet strength. By contrast, cybersecurity firm Qoria weighed on performance amid market concerns over profitability and cash, though sentiment rebounded after a takeover agreement by Aura Consolidated Group, highlighting both the current weakness in technology sector sentiment and WAM Microcap’s strategy of backing tech names where perceived AI disruption risks appear overstated.

The most recent analyst rating on (AU:WMI) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on WAM Microcap Ltd. stock, see the AU:WMI Stock Forecast page.

More about WAM Microcap Ltd.

WAM Microcap Ltd is an Australian listed investment company focused on undervalued growth opportunities in the domestic micro-cap segment. It manages a diversified portfolio of smaller listed companies and aims to deliver superior risk-adjusted returns and fully franked dividends to its shareholder base.

Average Trading Volume: 166,361

Technical Sentiment Signal: Buy

For a thorough assessment of WMI stock, go to TipRanks’ Stock Analysis page.