Dicker Data shares charge higher on dividend boost

Pay day is coming for owners of this popular income stock.

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Dicker Data Ltd (ASX: DDR) shares are ending the week on a positive note.

In afternoon trade, the computer hardware and software distributor's shares are up 2% to $11.50.

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.

Image source: Getty Images

Why are Dicker Data shares pushing higher?

Investors have been buying the company's shares today after it announced its latest quarterly dividend.

According to the release, the company has declared a 15 cents per share fully franked dividend for the three months ended December 31. Management notes that this "is in line with the Company's policy of paying out 100% of net profit after tax (NPAT)."

Dicker Data's final dividend is up significantly on last year's final quarterly dividend of 2.5 cents per share and will mean an increase year on year.

The company has already paid out 10 cents per share fully franked dividends for each of the first three quarters of FY 2023. This means Dicker Data will have distributed a total of 45 cents per share to its shareholders come pay day, which represents an 8.4% increase on the 41.5 cents per share that was paid out in FY 2022.

Based on where Dicker Data shares currently trade, this represents an annual fully franked dividend yield of 3.9%.

When is pay day?

The record date for this final 15 cents per share dividend will be 15 February, with the payment expected to be made the following month on 1 March.

In between those two dates, shareholders can look forward to hearing from management when it releases its full year results. The company is scheduled to release its number on Tuesday 27 February.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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