Your thoughts on Dicker Data (DDR) and Deterra Royalties (DRR)

Hi Octogenarian,

Dicker Data: we discussed this week how DDR was enjoying a similar AI tailwind as Harvey Norman (HVN) with the stock looking well-positioned to deliver both growth and a healthy dividend flow over the coming years; DDR is forecast to yield ~4.3% fully franked over the next 12-months. However, while the 3% position in our Active Income Portfolio is relatively small, we deem it appropriate considering the stocks volatility, as you indeed touched on.

• We remain long and bullish towards DDR but do not plan to increase our position size.

Detera Royalties: DRR is Australia’s largest listed mining royalty company, primarily earning revenue from a royalty over BHP’s iron ore operations in the Pilbara region. The company provides investors with exposure to low-cost, long-life iron ore production through a high-margin, capital-light business model. This $2.2bn business is forecast to yield ~4.8% fully franked over the next 12 months which is clearly attractive with the RBA Cash Rate forecast to test 3.1% in 2026.

• We like DRR as a yield play but the caveat being the iron ore price which will determine the dividends through 2026/7.

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Dicker Data Ltd (DDR)

LAST UPDATED 04/09/2025 10:49

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Dicker Data Ltd (DDR)

LAST UPDATED 04/09/2025 10:49