Why did WAM Capital’s share price start the week so poorly?

The WAM Capital Limited (ASX: WAM) shares fell 5.42% in early trading on Monday to $1.745.

But don’t worry, it’s just a simple case registered investment company (LIC) is going ex-dividend today.

WAM must pay the latter dividends for fiscal year 2022 on October 28.

Here’s the lowdown.

WAM Capital’s next dividend is coming soon

WAM Capital will pay a final dividend of 7.75 cents per share to its investors later this month.

Dividends are 100% franked, meaning investors benefit from this franking loans at tax time.

WAM has paid 7.75 cents per share in dividends twice a year for the past five years.

One of the reasons why WAM Capital’s dividend is so consistent is that the fund retains returns in strong years.

This profit reserve allows WAM Capital to continue paying the same or similar level of dividends each period.

Based on today’s stock price, WAM Capital has a recent annual dividend yield 8.64%.

As my Fool colleague Tristan reported last weekWAM Capital has achieved a gross total return of 14.7% per year since its inception in August 1999 through June 30, 2022.

Latest WAM Monthly Update

WAM released theirs latest monthly update on Friday.

The value of the WAM Capital fund fell in September.

Net tangible assets (NTA) per share before taxes were 140.53 cents at the end of the month. This is less than in August, when it was 152.35 cents.

This is reported by WAM Premier Investments Limited (ASX: PMV) was a good performer for the fund in September.

Conversely, Event Hospitality and Entertainment Ltd (ASX: EVT) was a trend.