The Dicker Data Ltd (ASX: DDR) share price is rocketing on Wednesday afternoon. This comes after the IT distributor announced its biggest ever dividend to investors ahead of its FY21 results later this month.
During early afternoon trade, Dicker Data shares are at an intraday high of $14.71 apiece, up 8.64%. It’s worth noting that the company’s shares have climbed more than 24% since hitting a three-month low on 27 January.
Dicker Data maintains strong dividend payout
Investors are buying up Dicker Data shares to get in on the company’s latest dividend action.
In its release, Dicker Data declared shareholders will receive a fully-franked final dividend payment of 15 cents per share. The company pays dividends every three months as opposed to a biannual basis like most other dividend-paying ASX businesses.
The second and third largest dividends from Dicker Data came in its FY20 result (10.5 cents) and FY19 result (13 cents).
The strong dividend payout means that Dicker Data will have rewarded its investors with a total yearly dividend of 42 cents. This represents an increase of 27.3% when compared to the prior corresponding period.
The record date for the final dividend falls on 15 February, with payment following on 1 March 2022.
Dicker Data advised it will release its audited FY21 results on Monday 28 February, providing details of its yearly performance.
Earlier this month, the company announced it has been appointed the non-exclusive Autodesk distributor for the Australian and New Zealand regions.
Dicker Data and Autodesk exchanged contracts and entered into a three-year agreement, securing the distribution rights.
No revenue detail was given as Dicker Data explained that it’s not possible to quantify the impact at this time. However, it did state that over the course of the agreement, it expects revenue to be significant.
Dicker Data share price snapshot
Over the last 12 months, Dicker Data shares have accelerated by nearly 19%. However, year to date they are 0.88% lower.
On valuation grounds, Dicker Data commands a market capitalisation of roughly $2.5 billion, with a trailing dividend yield of 2.55%.
The post Dicker Data (ASX:DDR) shares fly 8% on dividend announcement appeared first on The Motley Fool Australia.
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More reading
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Motley Fool contributor Aaron Teboneras owns Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited. The Motley Fool Australia owns 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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