Dicker Data Ltd (ASX: DDR) shares climbed 4% to $7.10 today after the IT hardware distributor took the unusual step of issuing some clarification around its latest agreement to partner as a distributor for IT security vendor Check Point.
The partnership was announced on November 8 but investors shrugged off the news on the basis that it probably made little difference to the group’s outlook.
Today though Dicker Data told investors that “the current available distribution market for Check Point in Australia is in excess of AUD$100m”.
It also flagged that enterprise security is one of the fastest-growing segments for Dicker Data as its end customers invest more in data and IT security.
Over calendar year 2018 Dicker Data earned revenue around $1.4 billion so we can see that the Check Point deal is small but not insignificant if it grows into its potential.
Dicker Data is also due to announce and pay a quarterly dividend over the next month or so, with investors likely to enjoy another healthy double-digit percentage rise in total dividends over the next 12 months as profits grow.
The post Dicker Data shares fly on new client win appeared first on Motley Fool Australia.
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Motley Fool contributor Tom Richardson owns shares of Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019