What’s ahead for shareholders in the IT wholesale distribution company’s latest dividend?
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At the time of writing, Dicker Data shares are down 1.72% to $14.26. Despite the drop, it’s worth noting the company’s shares are up 17% in a month.
Why are Dicker Data shares falling today?
With the company’s third-quarter results released late last month, investors are eyeing Dicker Data shares as they go ex-dividend today.
Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy Dicker Data shares before this date, the dividend will go to the seller.
Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.
What does this mean for Dicker Data shareholders?
For those eligible for Dicker Data’s third-quarter dividend, shareholders will receive a payment of 9 cents per share on 1 December. The dividend is fully-franked, which means investors can expect to receive tax credits from this.
Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price over 10 business days up until the record date (15 November).
The last election date for shareholders to opt-in to the DRP is 16 November.
Dicker Data share price summary
Since the beginning of 2021, Dicker Data shares have gained 36% on the back of positive investor sentiment. The S&P/ASX All Technology Index (ASX: XTX) is up around 10% over the same timeframe.
Dicker Data shares reached an all-time high of $16.60 in August, before plummeting on the back of the company’s half-year results.
Based on today’s price, Dicker Data commands a market capitalisation of roughly $2.47 billion, with approximately 172.83 million shares outstanding.
The post Dicker Data (ASX:DDR) share price edges lower as stock trades ex-dividend appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of 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.