The Dicker Data Ltd (ASX: DDR) share price has had a positive start to the week and has charged notably higher in morning trade.
At the time of writing the shares of Australia's largest and longest established distributor of information technology products are up over 5% to $3.00.
Why is the Dicker Data share price charging higher on Tuesday?
This morning Dicker Data provided the market with its unaudited results for the financial year ended December 31 2018.
During the 12 months the company achieved total revenue of $1,494 million, which was a 14.4% increase on FY 2017's $1,306 million.
This also compares favourably to its full year revenue guidance of $1,380 million given in March.
Management advised that this solid revenue growth was the result of realising the full value of new vendors introduced during FY 2017, new vendors introduced in FY 2018, and a strong performance with its existing vendors.
On the bottom line the company expects to post a profit before tax of $46 million in FY 2018. This will be a 15% increase on last year's profit before tax of $40 million.
This was over 8% ahead of its original guidance. Management had previously been targeting a profit before tax of $42.5 million in FY 2018.
Although the release did not mention its full year dividend, the company had previously planned to increase it by 7.1% in FY 2018 to 18 cents per share. Given the stronger than expected profit result, I wouldn't be surprised to see the board lift it even further.
Should you invest?
With its shares changing hands at 16x trailing earnings and providing a fully franked 6% forward dividend, I think Dicker Data's shares are great value and one of the best dividend options on the local market right now along with National Australia Bank Ltd (ASX: NAB) and National Storage REIT (ASX: NSR). I would class its shares as a buy even after today's solid gain.
