Dicker Data Declares 11c Fully Franked Dividend with March 3 Payment

Dividend Update and Context

Dicker Data Limited (ASX: DDR), a key player in the technology distribution sector, has provided an update to its previously announced dividend distribution. The company confirmed an ordinary dividend of AUD 0.11 per share, fully franked at the corporate tax rate of 30%, reflecting a commitment to returning value to shareholders. This dividend relates to the quarter ending December 31, 2024, with a record date of February 14, 2025, and payment scheduled for March 3, 2025.

The fully franked nature of the dividend signals that shareholders will receive the full benefit of the company’s tax credits, an attractive feature for investors seeking tax-efficient income streams. This update follows the initial announcement on February 11, 2025, with the key addition being the specification of the Dividend Reinvestment Plan (DRP) price.

Details of the Dividend Reinvestment Plan

Dicker Data’s DRP allows shareholders to reinvest their dividends into new shares rather than receiving cash. The company has set the DRP price at AUD 8.6584 per share, calculated as the arithmetic average of the daily volume weighted average market price over the 10 business days leading up to the record date. This method aims to provide a fair and transparent price for reinvestment.

Importantly, the DRP is not underwritten, meaning there is no guarantee of full participation or capital raising through this mechanism. Shareholders who do not actively elect to participate will receive their dividend in cash by default. The shares issued under the DRP will rank equally with existing shares from the issue date, maintaining shareholder equity balance.

Implications for Investors and Market

This dividend announcement reinforces Dicker Data’s steady financial position and its ongoing commitment to shareholder returns amid a competitive technology distribution landscape. The fully franked dividend and the option to reinvest via the DRP provide flexibility for investors balancing income needs and growth aspirations.

However, the absence of underwriting for the DRP introduces some uncertainty regarding the volume of shares that may be issued, which could have a modest dilutive effect if participation is high. Investors will be watching closely how shareholders respond to the DRP offer and whether this influences the company’s capital structure or future dividend policies.

Overall, this update is a positive signal of Dicker Data’s operational stability and shareholder engagement strategy as it navigates the evolving technology sector.