Do Appen shares pay dividends?

Appen is one of the more famous tech shares on the ASX. But how does it go with dividends?

| More on:
two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Appen is something of a fallen angel of ASX growth shares
  • From touching near-$40 back in 2020, Appen shares are now trading at under $7 a share
  • But, unlike many ASX tech shares, the company is still paying a dividend

Although its reputation has taken a battering in recent years, Appen Ltd (ASX: APX) is still one of the most prominent ASX tech shares on the share market. This annotated dataset company made itself into an investing household name a few years ago when it delivered back-to-back double-digit (sometimes triple-digit) share price rises over 2015, 2016, 2017, 2018, and 2019.

But the wheels have arguably fallen off the Appen share price ever since. 2020 was the last time Appen had a record high share price. Back then, this ASX tech share hit a high of more than $40 a share. But that was in August 2020, and it has been downhill for Appen ever since.

Today, the company's shares are trading at $6.54 each at the time of writing. That's on par with the pricing we saw back in early 2018.

A series of earnings downgrades, a lack of earnings certainty, and compression of Appen's price-to-earnings (P/E) ratio have all arguably contributed to Appen's recent woes.

Is Appen an ASX dividend share?

But even though Appen's status as a top ASX growth share has taken a battering, its dividend history is an entirely different tale. Unlike many ASX tech shares, Appen does pay a dividend. And what's more, the company has been able to keep its shareholder payouts growing fairly consistently, despite the difficulty it has had with its share price.

Appen has been an ASX dividend share for years. In 2015, the company doled out dividends worth just 1.2 cents per share. But a series of consecutive annual increases saw the company end 2021 having paid out 10 cents per share – an almost ten-fold increase in six years.

2021 saw an interim dividend of 4.5 cents per share, as well as a final dividend of 5.5 cents. Both payments were partially franked at 50%. But Appen has also paid out one dividend in 2022 so far. That was the company's final payment, which came in at 5.5 cents per share. It was paid out on 18 March.

At the current Appen share price, that gives this ASX 200 tech share a dividend yield of 1.53%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A corporate female in a suit stands in front of a huge holographics virtual reality screen with shapes and lights and pictures
Technology Shares

Bell Potter names the best ASX tech stocks to buy in FY 2026

Looking for tech sector exposure? These shares could be worth considering.

Read more »

Man on computer looking at graphs
Technology Shares

$8,000 invested in Xero shares 1 year ago is now worth…

Xero shares have raced ahead of the benchmark over the past year.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Technology Shares

How could WiseTech Global shares be impacted by its new model?

The company wants to be the operating system for global logistics.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
Technology Shares

What's the latest for ASX tech stocks?

One main theme continues to elevate itself in the ASX tech sector.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Xero shares in focus: here's Macquarie's take on the $3.8 billion Melio acquisition

Are investors making a costly mistake selling Xero shares today?

Read more »

Man on his laptop standing next to data centres.
Broker Notes

Macquarie tips 54% upside for NextDC shares

NextDC shares certainly have momentum.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Technology Shares

Guess which ASX 300 tech stock is making a 'cutting-edge' US$28m acquisition

What is this tech stock buying? Let's find out.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Technology Shares

Why are Xero shares crashing 9% today?

This cloud accounting platform provider is making big news this week.

Read more »