Dividend Reinvestment Plan (DRP)
A Dividend Reinvestment Plan (DRP) is a program that allows investors to automatically reinvest their cash dividends to buy more shares of the same company, instead of receiving the dividends as cash. This helps grow their investment over time through compounding.
Wilson Asset Management’s listed investment companies (LICs) offer Dividend Reinvestment Plans. You can elect to participate in a partial or full capacity.
To apply for the Dividend Reinvestment Plan, please follow either of the below instructions:
- You can manage this directly via Boardroom’s InvestorServe platform. A copy of the Dividend Reinvestment Plan can be found on the left-hand menu under the ‘Payment Instructions’ > ‘Reinvestment & Donations’.
- Alternatively, you can email [email protected] or call 1300 420 372 and request a form. You will need to complete these and send them back to Boardroom Limited to process for your holdings.
Please refer to the Dividend Reinvestment Plan Booklet for each LIC:
- WAM Capital (ASX: WAM)
- WAM Leaders (ASX: WLE)
- WAM Global (ASX: WGB)
- WAM Microcap (ASX: WMI)
- WAM Alternative Assets (ASX: WMA)
- WAM Strategic Value (ASX: WAR)
- WAM Income Maximiser (ASX: WMX)
- WAM Research (ASX: WAX)
- WAM Active (ASX: WAA)
Participation Options
Participation in the Dividend Reinvestment Plan is entirely voluntary. Shareholders can choose:
- Full participation – reinvest all dividends
- Partial participation – reinvest a portion of dividends
- No participation – continue receiving cash dividends
Shareholders can join, vary, or withdraw from the Dividend Reinvestment Plan at any time, subject to election deadlines prior to the dividend record date.
Key Features
- No additional costs: Shares are issued without brokerage, commission, or stamp duty
- Flexible participation: You can change your participation level at any time
- Residual balances: Any remaining funds that are insufficient to acquire a whole share will be carried forward in accordance with the Dividend Reinvestment Plan rules
- Equal ranking: Shares issued under the Dividend Reinvestment Plan rank equally with existing shares
Eligibility
Participation is subject to applicable laws and jurisdictional requirements. The company may determine eligibility criteria or restrict participation in certain regions.
Administration and Changes
The Board retains full discretion over the Dividen Reinvestment Plan and may:
- Determine whether the Dividen Reinvestment Plan applies to a particular dividend
- Set or vary any discount applied to shares
- Modify, suspend, or terminate the Dividen Reinvestment Plan at any time
Any changes are announced to the market and apply going forward.
Important Considerations
Participation in the Dividend Reinvestment Plan does not restrict your ability to sell your shares. However, taxation implications will vary depending on individual circumstances, and shareholders should consider seeking professional advice.
