The Dicker Data Ltd (ASX: DDR) share price edged higher on Wednesday following the company's first quarter market update.
At yesterday's market close, Dicker Data shares advanced 1.63% to $12.47 after spending most of the morning in negative territory.
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Dicker Data maintains strong dividend payout
The IT distributor announced its equally second biggest ever dividend to investors which helped propel the company's shares forward.
In its release, the Dicker Data board declared a fully franked interim dividend payment of 13 cents per share. The company pay dividends every 3 months as opposed to a bi-annual basis like most other dividend-paying ASX businesses.
Previously, its quarterly dividends consisted of 9 cents per share before declaring a 15 cent per share final dividend.
Management stated that the proposed rate for the interim dividends for FY22 will also be 13 cents per share. This brings the total proposed dividends to be paid in FY22 to 54 cents per share, up 44% on FY21.
The company's dividend policy is to pay out 100% of after-tax profits, and thus will retain paying quarterly dividends.
However, to provide consistency and certainty for investors, Dicker Data noted that each interim dividend will be at an equal rate.
The record date for the final dividend falls on 16 May, with payment following on 1 June 2022.
Dicker Data share price snapshot
Over the last 12 months, Dicker Data shares have accelerated by around 35%, however year to date is 16% lower.
It's worth noting that the company's shares touched a 10-month low of $11.60 on Tuesday before recovering lost ground.
On valuation grounds, Dicker Data commands a market capitalisation of roughly $2.12 billion, with a trailing dividend yield of 3.47%.
