Dicker Data Limited has updated its dividend distribution announcement, revealing a fully franked ordinary dividend of AUD 0.11 per share and setting the Dividend Reinvestment Plan price at AUD 8.897. The update clarifies key details ahead of the September payment date.
- Ordinary fully franked dividend of AUD 0.11 per share for quarter ending 30 June 2025
- Dividend record date set for 15 August 2025, payment on 1 September 2025
- Dividend Reinvestment Plan (DRP) price fixed at AUD 8.897 with no discount
- DRP participation optional with no minimum or maximum limits
- New shares issued under DRP will rank pari passu from issue date
Dividend Details Confirmed
Dicker Data Limited (ASX, DDR), a key player in the IT distribution sector, has provided an important update to its dividend announcement for the quarter ending 30 June 2025. The company confirmed an ordinary dividend of 11 cents per share, fully franked at the corporate tax rate of 30%, underscoring its commitment to returning value to shareholders.
The record date for dividend eligibility is 15 August 2025, with the payment scheduled for 1 September 2025. This timeline aligns with typical quarterly dividend cycles, providing investors with clarity on when to expect returns.
Dividend Reinvestment Plan Price Set
Crucially, Dicker Data has now disclosed the Dividend Reinvestment Plan (DRP) price, set at AUD 8.897 per share. Unlike some DRPs that offer discounts to incentivize participation, this price reflects the arithmetic average of the daily volume weighted average market price over the 10 business days leading up to the record date, with no discount applied.
Participation in the DRP remains optional, with shareholders defaulting to cash payments if they do not elect to reinvest. There are no minimum or maximum participation limits, making the plan accessible to all shareholders regardless of their holding size.
Implications for Shareholders and Capital Structure
The DRP shares will be newly issued and will rank pari passu with existing shares from the issue date, 1 September 2025. This issuance will slightly increase the company’s share capital, a factor investors should monitor as it may have a modest dilutive effect on earnings per share if DRP participation is significant.
Notably, the DRP is not underwritten, indicating that the company will only issue shares corresponding to actual reinvested dividends, avoiding overextension of equity issuance.
Looking Ahead
With the dividend payment date approaching, investors will be watching closely to see the level of DRP uptake and how the market responds to the new shares issued. The fully franked nature of the dividend continues to make Dicker Data an attractive proposition for income-focused investors, particularly in a sector where steady cash flow is prized.
Bottom Line?
As Dicker Data finalises its dividend details, the market will be keen to gauge DRP participation and its impact on share capital.
Questions in the middle?
- What level of shareholder participation will the DRP attract given the absence of a discount?
- How might the new share issuance under the DRP affect Dicker Data’s share price and earnings per share?
- Will the fully franked dividend policy continue consistently in future quarters amid market fluctuations?