The Dicker Data Ltd (ASX: DDR) share price is enjoying a fresh record high on Thursday. This comes after the IT distributor announced its third-biggest quarterly dividend to investors.
During late afternoon trade, Dicker Data shares hit an all-time high of $14.97. However, some profit-taking has occurred, slightly pulling the shares back to $14.94, up 0.40%.
Dicker Data maintains strong dividend payout
Investors appear pleased with the company’s performance of late, sending Dicker Data shares 35% higher in a month.
In its release, Dicker Data declared a fully-franked dividend payment of 9 cents per share to be paid to shareholders.
It’s worth noting that the company pays dividends every 3 months instead of a semiannual basis like most other dividend-paying ASX businesses.
The largest and second-largest dividends from Dicker Data came in its FY20 results (10.5 cents) and FY19 results (13 cents).
The strong dividend payout means that Dicker Data has rewarded its investors with a total yearly dividend of 34.5 cents. Based on the current share price, this represents a trailing dividend yield of 2.3%.
The latest record date for the dividend falls on 18 August, with payment following on 1 September 2021.
Just last week, Dicker Data completed the acquisition of the second-largest IT distributor in New Zealand, Exeed Group.
The $68 million purchase is expected to provide Dicker Data with a platform to take on the biggest IT distributor in the country, Ingram Micro.
Dicker Data revealed it will use a mix of local market knowledge and access to its large range of brands. It estimates that its combined New Zealand businesses will have a revenue turnover of about $500 million.
Dicker Data share price snapshot
Over the last 12 months, Dicker Data shares have accelerated by more than 100%, with year-to-date gains of 39%.
On valuation grounds, Dicker Data commands a market capitalisation of roughly $2.5 billion, with more than 172 million shares outstanding.
The post Dicker Data (ASX:DDR) share price hits record high following dividend boost appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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