Dicker Data Limited (ASX: DDR)

Strong Segmental Performance: The company reported impressive performance in FY17, wherein topline grew by 10.2% and net profit before tax grew at 9.9% on year on year (YoY) basis. Revenue growth surged due to organic growth and gained full year contribution from new vendors. During the year, the company has added a total of 18 new vendors, contributing an incremental $87 Mn. From the existing vendors, the company experienced growth of $33.8Mn, up by 2.9% as compared to previous year. On geographic segment front, Domestic sales grew by 11.1% to $116.1 Mn whereas New Zealand sales grew at 3.0% on YoY basis. At business segment level, the company delivered robust growth across all segments wherein hardware grew by 7% YoY to $71 Mn, software increased by 22% YoY to $49 Mn, services rose by 15% YoY to $1 Mn, and storage increased by 23% YoY to $3 Mn. Property, plant and equipment increased to $45 Mn in FY17 from $43.9 Mn in FY16 due to demolition and site preparation for the property purchased last year for construction of the new distribution centre. Regarding the new distribution centre, plans are underway to be lodged for DA approval.

The board of director declared final dividend of 4.8 cents per share with record date of February 19, 2018 and payment date of March 2, 2018. With this, the total dividend for FY17 amounted to 16.40 cents per share, up from 15.5 cents per share in previous year.

Meanwhile, DDR stock has risen 12.35% in six months as on February 28, 2018. As of now, we give a “Hold” recommendation on the stock at the current price of $2.78
 

Dividend Payments (Source: Company Sources)
 

WAM Capital Ltd (ASX: WAM)

Dividend Payment Trend Continues: WAM Capital is the largest listed investment company run by Wilson Asset Management. WAM Capital’s investment provides investor with exposure to an actively managed diversified portfolio of undervalued growth companies with the objective of delivering fully franked dividends, providing capital growth and preserving capital. The company declared a record operating profit before tax of $119.4 million for the half of the year to 31 December 2017, which is an increase of 49.8% on the prior corresponding period (2016: $79.7 million). Operating profit after tax accounted to $87.4 Mn in 1HFY18 from $59.1 Mn in 1HFY17,marking a growth of 48% YoY. In the past six months, WAM’s gross asset grew by 8.8% to $1.3 bn. In addition to this, the dividend reinvestment plan shortfall had raised $43.4 Mn in the month of November 2017.

An interim dividend for six months ending 31 December 2017, of 7.75 cents per share (up 3.3% on pcp) is to be paid on 27 April 2018 with an ex-dividend date of 13 April 2018, representing an annualised fully franked dividend yield of 6.3%. Further, the dividend reinvestment plan (DRP) is available to shareholders for the interim dividend and the DRP will operate at 2.5% discount rate. Meanwhile, we maintain a “Hold” recommendation at the current price of $2.47
 

Dividend Performance since Inception (Source: Company Reports)

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