Dicker Data's shares soar to record high

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Dicker Data's shares soar to record high

Dicker Data's share price has reached record levels in 2019, and shows few signs of slowing down.

As Motley Fool pointed out, Dicker Data's share price reached a record high this week of $4.51 each at the time of writing, compared to $2.82 at the start of the year.

The distie's share price slowly ticked up since the mega-merger between Dicker Data and Express Data in 2014, climbing from around a dollar each when the acquisition was announced to $2.81 at the start of 2019.

Dicker's share price really started taking off on 29 January 2019 when the company reported its unaudited full year results for the previous year. The distie's reported revenue hit $1.49 billion, up 14.4 percent that year, thanks to the realisation of full value from new vendors introduced in 2017 and 2018, including the likes of HPE, Seagate, APC and HDS. Dicker also reported $46 million in pre-tax profit for 2018.

Since then, Dicker's share price has grown 56.14 percent.

Founder and CEO David Dicker told CRN it was a very satisfying outcome for his company.

"An incredible result, which fully vindicates the strategy that was put in place when the company was first listed," Dicker said.

Shareholders should be smiling too as they received a combined $28.9 million in dividend payouts in 2018. Dicker Data pays out quarterly dividends with the intent of paying out 100 percent of underlying after-tax profits from operations. Dicker also paid a final dividend of 7 cents in February, bringing the total dividend to 20.20 cents per share for 2018.

"Despite the objections of our advisors on dividend policy, share issues, announcement strategies and the great difficulty we had convincing analysts that this stock was a winner, we have proven that a real company, with real profits and consistent growth can deliver for the shareholders," Dicker said. "Especially those with faith in us from the early days."

Employees will be cheering too, given the company gave all of its employees $1000 worth of shares in May last year when shares were priced at $2.88.

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