Dicker Data Ltd (ASX: DDR) shares are trading in the green on Tuesday afternoon. At the time of writing, the ASX dividend stock is up 1.61% to $8.54 a piece.
It’s a welcome reprieve for investors after the Australian-owned technology company’s share price crashed 18% in late February to early March. There has been some recovery since the sharp sell-off, but the shares are still down 16% year to date.
What caused the Dicker Data share price crash?
There wasn’t one sole factor which caused the ASX dividend stock to crash, but a combination of headwinds which all hit at the same time.
Geopolitical uncertainty in the face of the escalating war in the Middle East caused a sector-wide sell-off earlier this month. At the same time, Australia is faced with the prospect of multiple cash rate increases as the Reserve Bank tries to get on top of soaring inflation.
The combination saw investors sell up their riskier stocks in sectors like technology, and shifted into safe-haven assets instead.
Why is Dicker Data a good ASX dividend stock?
Despite the sharp investor sell-off over the past month, Dicker Data’s fundamentals are still sound. In late February, the company announced a 12.5% increase in its statutory revenue for FY25 and a 14.9% increase in gross revenue. EBITDA and NPAT also increased by 5.9% and 8.8%, respectively.
The strong results meant the tech business could declare a final dividend of 11.5 cents per share, bringing fully franked dividends for FY25 to 44 cents. Management also confirmed a revised payout range of 80% to 100% of NPAT.
Not only does Dicker Data distribute a significant portion of its earnings to investors, but it also does so regularly. Unlike many other ASX dividend stocks, the company has paid a quarterly, fully franked dividend to its investors since 2016. That provides some strong cash generation.
Right now is a buying opportunity for investors
TradingView data shows that investors are mostly bullish on Dicker Data’s outlook. Five out of eight analysts have a buy or strong buy rating on the ASX dividend stock, and another three have a hold rating.
Regardless, the consensus is for a strong upside over the next 12 months. The maximum target price of $12.50 implies a 47% upside at the time of writing. Even the minimum $10.30 target price implies analysts think the stock will soar 21%.
It looks like the ASX dividend stock’s latest share price weakness has created a compelling buying opportunity for long-term investors seeking reliable income and growth.
The post 1 super cheap ASX dividend stock down 16% to buy and hold for decades appeared first on The Motley Fool Australia.
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More reading
- 3 of the best ASX income stocks to buy now
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- 5 ASX dividend shares to buy for income in 2026
- Dicker Data shares fall to a 7-month low. Is this a bargain buy?
Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.