Highlights

  • Data#3 (ASX:DTL) has declared a fully franked final Dividend of $0.182 per share.
  • The dividend carries a 2.84% annual yield, with an ex-date of 15 September 2026.
  • FY2026 gross sales rose 12.7% to $3.4 billion, while statutory Revenue increased 6.4% to $907.3 million.
  • A debt-free Balance Sheet and planned AI and cyber security investments support the company's growth outlook.

Data#3 Limited (ASX:DTL) is one of Australia's largest technology services and solutions providers, reselling software and infrastructure and delivering managed services to corporate and government clients. The company has declared a fully franked final dividend of $0.182 per share for FY2026, with an annual Yield of 2.84%. The ex-dividend date is 15 September 2026, the Record Date is 16 September 2026 and payment is due on 30 September 2026. The dividend is 100% franked.

Data#3 has a strong track record of consistent, fully franked dividends underpinned by a capital-light, cash-generative Business model and no debt. A Payout Ratio near 90% means dividends closely track earnings, so growth in the distribution depends on continued profit growth rather than balance-sheet leverage. The company ended the year with about $326 million in cash and no borrowings, providing comfortable cover for its franked payout, though shareholders should note that a high payout leaves limited retained Earnings buffer if profits stall.

What is driving the business?

Data#3 lifted FY2026 gross sales 12.7% to $3.4 billion, with statutory revenue up 6.4% to $907.3 million. Earnings before interest and tax rose 16.6% to $69.8 million, net profit before tax grew 14% to $78.8 million, and Earnings Per Share increased 13% to 35.16 cents.

Growth was broad-based: Software Solutions gross sales rose 14.1% to $2.3 billion and Infrastructure Solutions climbed 14.1% to $651.1 million. Looking ahead, the company plans to establish a dedicated AI Practice and a round-the-clock Sovereign Security Operations Centre, investments aimed at capturing rising Demand for artificial intelligence and cyber security.

Why income investors may be watching

Data#3 combines a growing earnings base with a high, fully franked payout and a debt-free balance sheet, an unusual mix in the technology sector. Franking credits add after-tax value for Australian investors, and the consistency of the dividend record has made it a favourite among income-focused holders.

The key question is durability of growth. Investors may want to watch whether the software and services mix, and new AI and security offerings, can keep lifting earnings, since a roughly 90% payout means dividend growth is tightly linked to profit growth.

Risks

Much of Data#3's gross sales are pass-through software licences, so headline volumes can overstate the underlying margin, and Operating Cash Flow can swing with the timing of large receipts and payments; it fell in FY2026 on such timing effects. The business is exposed to enterprise and government IT budgets, which can tighten in weaker economic conditions.

Competition among IT resellers and services providers is intense, and vendor relationships are important to margins. With a high payout ratio, any earnings setback would flow quickly to the dividend. Investors may want to watch margins, cash conversion and demand across its two divisions.

Investor takeaway

Data#3 continues to pair steady growth with a high, fully franked dividend, declaring a $0.182 final payment with a 2.84% annual yield. The dividend is 100% franked, with an ex-dividend date of 15 September 2026, a record date of 16 September 2026 and payment scheduled for 30 September 2026.

The income appeal is supported by earnings growth and a debt-free balance sheet, but a roughly 90% payout ties future dividends closely to profits. Investors may want to watch profit growth, cash conversion and the payoff from new AI and security investments as the drivers of both growth and income from here.