When I — Owen Rask — think about investing in… anything… my best outcome would be:
- Rapid growth, AND
- Consistent dividends, AND
- Tax-effective franking credits
While it might sound like ‘the holy grail’ of wishful thinking, that’s exactly what long-term investors have got from Dicker Data Ltd (ASX: DDR).
Dicker Data share price
Dicker Data is an IT distribution business (think: PCs, accessories, etc.).
Its shares listed on the ASX under the symbol ‘DDR’ in 2011 (despite it being nearly 30 years old at the time), at $0.20 each.
Dicker Data share price: up 4,662% since 2011
Not only is the share price up 46 times since 2011, it’s also paying a BIG dividend.
For example, if you owned the shares since IPO, this year alone you would have received dividends to the tune of 177% of your original investment.
The Dicker Data IPO share price was $0.20, and this year it paid $0.355 in dividends!
In other words, not only would your $10,000 investment be worth ~$460,000, you would receive over $17,000 of yearly dividends.
But wait, there’s more…
On top of the cash dividends, it’s offering full franking credits.
Remember, franking credits are just tax credits stored at the ATO, which you can claim back in your tax return (note: there are some eligibility requirements for franking credits).
In summary: amazing.
What would you do with 112 million shares…
Now let’s imagine something…
Let’s imagine you own 112 million shares in this ‘ASX dividend wonder’.
What would you do with all that cash?
Well, David Dicker, Founder and Chairman, went out and created a car company. And not just any car company.
Until recently, Rodin Cars was in pole position to be added to the Formula 1 as its newest team.
We recorded tonight’s Rask LIVE interview just days after he found out his team wouldn’t be admitted.
In tonight’s special Rask LIVE, David Dicker and I talk about:
- His fascination with Ferrari — the cars and the business.
- The earliest foundations of Dicker Data.
- What it takes to build a car, faster than many F1s, in under 10 years.
- How Dicker Data can pay up to 100% of its profit back as dividends…
- And still grow its business wicked fast.
I’m not an investor in Dicker Data. And I’m not suggesting anyone go and buy shares of Dicker Data.
But, boy, this conversation is a fascinating exploration into the world of one of Australia’s best-performing CEOs and founders.
At the very least, you’ll discover some of the richest insights in business and investing, with the side benefit of learning a lot about car racing.
6pm tonight: Join the premiere of my full interview with David Dicker, Chair of Dicker Data. Click here to tune in.
All you have to do is arrive at this YouTube link at 6pm to get it fresh (or watch it back on replay anytime you like).
I’ll be back to recording live with you next week.
Rask LIVE is brought to you by Selfwealth.
Chief Investment Officer of Rask Invest
Host of Rask LIVE