Dicker Data Declares Fully Franked AUD 0.11 Dividend with DRP Option
Dicker Data Limited has announced a fully franked ordinary dividend of AUD 0.11 per share for the quarter ending December 2024, alongside a Dividend Reinvestment Plan offering shareholders flexibility.
- Fully franked ordinary dividend of AUD 0.11 per share
- Ex-dividend date set for 13 February 2025
- Dividend payment scheduled for 1 March 2025
- Dividend Reinvestment Plan (DRP) available with no discount
- DRP shares issued at average market price over 10 days before record date
Dividend Announcement Overview
Dicker Data Limited (ASX: DDR), a key player in the Australian IT services sector, has declared an ordinary dividend of AUD 0.11 per share, fully franked at the corporate tax rate of 30%. This dividend relates to the quarter ending 31 December 2024, reflecting the company’s ongoing commitment to returning value to shareholders.
The ex-dividend date is set for 13 February 2025, with the record date following on 14 February 2025. Shareholders on the register by this date will be entitled to receive the dividend payment scheduled for 1 March 2025.
Dividend Reinvestment Plan Details
Dicker Data also offers a Dividend Reinvestment Plan (DRP), allowing shareholders to reinvest their dividends into new shares rather than receiving cash. The DRP is fully available for this dividend, with no discount applied to the reinvestment price. The price for DRP shares will be calculated as the arithmetic average of the daily volume weighted average market price over the 10 business days leading up to the record date, ensuring a fair market valuation.
Shareholders wishing to participate in the DRP must lodge their election by 17 February 2025. The DRP shares will be newly issued and rank pari passu with existing shares, maintaining equal rights and entitlements. There are no minimum or maximum participation limits, making the plan accessible to all shareholders.
Financial and Market Implications
The fully franked nature of the dividend signals Dicker Data’s strong profitability and tax position, which is reassuring for investors seeking reliable income streams. The consistent dividend payout aligns with the company’s stable earnings profile in the competitive IT services industry.
Offering a DRP without a discount is a neutral approach that balances shareholder flexibility with capital management prudence. It also suggests confidence in the company’s share price and future prospects, as reinvested dividends will be priced at market levels.
Investors will be watching closely to see how the market responds to this dividend announcement, particularly given the broader economic conditions and sector dynamics. The dividend reinforces Dicker Data’s shareholder-friendly stance while maintaining financial discipline.
Bottom Line?
Dicker Data’s fully franked dividend and accessible DRP underscore steady shareholder returns amid evolving market conditions.
Questions in the middle?
- Will Dicker Data maintain or increase dividend payouts in upcoming quarters?
- How will the DRP participation rate affect the company’s capital structure?
- What impact might broader IT sector trends have on Dicker Data’s future earnings and dividends?