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Datatec Ltd (DTTLY) is an international information and communications technology solutions company.

The company's portfolio of businesses is split into three core divisions: (1) Westcon International: Technology distribution of security and networking products, (2) Logicalis International: ICT infrastructure solutions and services and Logicalis Latin America: ICT infrastructure solutions and services. (3) Technology distribution, which offers services related to cyber security and network infrastructure, contributes the majority of the firm's revenue.

It offers solutions through a network of service providers, systems integrators, and specialty resellers under the Westcon and Comstor brands.

The company also provides digital services; and strategic, trusted advisory, modeling, and market intelligence services to the telecoms, media, and technology industries.

Datatec Limited was founded in 1986 and is headquartered in Sandown, South Africa

Three key data points gauge Datatec Ltd or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

DTTLY Price

Over the past year, Datatec’s share price fell about 35% from $5.61 to $3.65 as of Monday’s market close.

If DTTLY stock trades in the range of $3.00 to $5.00 this next year, its recent $3.65 share price might rise to $4.50 by next year. Of course, Datatec’s price could drop about the same $0.85 estimated amount, or more.

My upside estimate of $0.85, however, is about at the mid-point of the average annual price swings shown over the past two years the company has paid regular dividends.

DTTLY Dividend

Datatec Ltd has paid variable annual dividends since August 3, 2021.  Datatec’s most recent A dividend, paid in August 1 to shareholders of record July 13th, was $0.2146.

The next likely dividend could measure up to an annual forward looking yield of 5.88%.

DTTLY Returns

Add the $0.21 anticipated annual dividend to Datatec’s estimated $0.85 possible price upside, reveals a $1.06 estimated gross gain per share for the coming year.

At Monday’s $3.65 closing price, a little over $1000 would buy 274 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.04 per share.

Subtracting that likely $0.04 brokerage cost from my estimated $1.06 gross gain per share makes a net gain of $1.02 X 274 shares = $279.48 or about a 28% net gain.

This might be about time to pounce on Datatec Ltd shares. But beware, DTTLY is a South African Technology conglomerate paying variable annual dividends for two years. However, the estimated $58.80 annual dividend from $1000 invested comes in at almost 16 times greater the recent $3.65 single share price. The question is how many more annual dividend payments are forthcoming?

Remember the true value of any stock is best realized through personal ownership of shares.

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