The WAM Capital Limited (ASX: WAM) share price is down 5.42% in early trading on Monday at $1.745.
But don't worry, it's just a simple case of the listed investment company (LIC) going ex-dividend today.
WAM is set to pay its final dividend for the 2022 financial year on 28 October.
Here's the lowdown.
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WAM Capital's next dividend coming soon
WAM Capital will be paying a final dividend of 7.75 cents per share to its investors later this month.
The dividend is 100% franked, which means investors will benefit from franking credits at tax time.
WAM has paid 7.75 cents per share in dividends twice per year for the past five years.
One of the reasons WAM Capital's dividend is so stable is that the fund saves profits in strong years.
This profit reserve enables WAM Capital to keep paying the same or similar level of dividend each period.
Based on today's share price, WAM Capital has a trailing annual dividend yield of 8.64%.
As my Fool colleague Tristan reported last week, WAM Capital has generated gross total returns of 14.7% per annum since its inception in August 1999 through to 30 June 2022.
WAM's latest monthly update
WAM released its latest monthly update on Friday.
The value of the WAM Capital fund went down in the month of September.
The net tangible assets (NTA) per share before tax at the end of the month was 140.53 cents. This is down from August when it was 152.35 cents.
WAM reported that Premier Investments Limited (ASX: PMV) was a strong performer for the fund in September.
Conversely, Event Hospitality and Entertainment Ltd (ASX: EVT) was a drag.
