Here's the ASX tech share with the highest dividend yield right now

Which ASX tech share offers the highest dividend yield today?

| 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

  • ASX tech shares are not known for their dividends 
  • In fact, many do not even pay dividends at all 
  • But there is one share that dominates this sector when it comes to dividends... 

When it comes to dividend-paying ASX shares, chances are one's mind doesn't immediately spring to the tech sector. There are many sectors on the ASX renowned for their hefty dividend payments. ASX bank shares? Of course. Resources? Definitely. But ASX tech shares? Not so much.

The S&P/ASX 200 Index (ASX: XJO) has many famous names in its tech sector. But few are famous for paying dividends. This is not unique to the ASX. Some of the largest tech companies in the world don't pay dividends, despite some having mountains of cash on their balance sheet.

Giants like Amazon.com Inc (NASDAQ: AMZN), Meta Platforms Inc (NASDAQ: META) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) have never paid a dividend, despite all being valued at over US$1 trillion at various points in time.

But that doesn't mean the ASX has no dividend-paying tech shares. So let's embark on a mission to find the highest-yielding tech share on the ASX today.

So yes, plenty of ASX tech shares have never paid out a dividend. This includes Xero Limited (ASX: XRO), Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: SQ2). Block's Afterpay didn't fund any dividends when it was an ASX share either.

But plenty of others do. Some ASX tech shares that currently pay dividends include Altium Limited (ASX: ALU), Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC).

Dicker Data dividend dominates the ASX tech sector

But these companies are not even close to being the highest-yielding ASX tech dividend share. That honour probably goes to Dicker Data Ltd (ASX: DDR).

Dicker Data is a company that provides a range of hardware, software and cloud-based technology services. It is probably best known for its hardware, which includes selling data storage, servers, networking equipment and more.

This company has spent the past few years cultivating what is now a fairly impressive dividend record. Dicker Data has been paying dividends consistently for over a decade now.

What's more, it has managed to deliver a dividend pay rise every single year since 2012. That includes through the COVID-ravaged year of 2020.

In 2011, the company paid out a total of 9 cents per share in dividends. But this year, Dicker Data has doled out a total of 26 cents per share in dividends, all fully franked.

That gives this company a dividend yield of 4.87% at the market close share price on Friday, or 6.96% grossed-up with the full franking.

That is a decent dividend yield by any ASX standards, even coming in above what Commonwealth Bank of Australia (ASX: CBA) is offering right now. And compared to other ASX tech shares, it is certainly a sector leader.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, and Meta Platforms, Inc. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Altium, Amazon, Appen Ltd, Block, Inc., Dicker Data Limited, Meta Platforms, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., Dicker Data Limited, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »

Group of people in a gym high five each other surrounded by gym equipment.
Mergers & Acquisitions

This ASX tech stock is hitting a record high on acquisition news

The market is responding positively to this news. Let's dig deeper into it.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Guess which ASX 300 share is crashing 17% on shock news

Investors are rushing to the exits on Thursday. Let's find out why.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Technology Shares

These were the best ASX 200 tech stocks to buy in May

Shareholders of these shares were smiling last month. But why?

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Technology Shares

Here's why I think these ASX tech shares are buys in June

These stocks have loads of potential.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Technology Shares

Why did the Life360 share price rocket 51% in May?

This ASX 200 stock smashed the market last month with an incredible gain.

Read more »

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

Up 30% since April, are Xero shares still a buy?

Xero shares have surged 30% since April, but can this SaaS leader's share price keep rising?

Read more »

A man and a woman sitting in a technology-related work environment high five each other while the man wears headphones around his neck and the woman sits in front of a laptop.
Share Market News

Strong gains for Wisetech, TechnologyOne, and Catapult amid ASX 200 tech sector lead

ASX technology shares led the market with a 3.85% increase while the ASX 200 lifted 0.88% last week.

Read more »