5 Dividend-Paying Tech Stocks on ASX- ALU, CPU, LNK, TNE, APX

Tech Stocks asx
Dividend

Distribution or dividend is a reward that a profit-making company gives to its shareholders from a portion of its earnings. The amount of dividend that needs to be provided to the shareholders is as per the decision made by the board of directors.

Shareholders are provided dividend from the net profit of the company. When a company earns profit, a major portion of the amount is kept as retained earnings. The money kept in the form of retained earnings helps the company in driving any future activities as well as ongoing business. Some of that amount is used for paying dividend to the shareholders.

In this article, we would discuss five technology stocks that are repeatedly rewarding their shareholders with a dividend.

Altium Limited

Altium Limited (ASX: ALU), an IT sector player that is engaged in the business of developing and selling computer software for the design of electronic products, has consistently paid dividends to its shareholders for the last five years. Each year, the company has provided its shareholders with better dividend. In FY2015, the company paid a dividend amount of A$0.16 per share, with the amount reaching A$0.34 in FY2019.

Altium Limited

Altium Limited asx

Image Source: ASX

FY2019 Highlights (ended 30 June 2019)
  • ALU in FY2019 experienced strong revenue growth of 23%.
  • EBITDA margin went up from 32% in FY2018 to 36.5% in FY2019.
  • Earnings per share increased by 41% to US$0.4057.
  • Operating cash flow went up by 42% to US$69.1 million.
  • Dividend per share declared for FY2019 was A$0.34.
Stock Performance:

The shares of ALU have given a decent YTD return of 62.38%, while in the last six months, it has delivered a return of 5.44%. The ALU stock opened at a price of A$34.500 and was trading at A$34.370 on 16 September 2019 (AEST 12:06 PM), down 2.052% from its previous close. ALU has a market cap of A$4.6 billion, ~ 130.97 million outstanding shares and annual dividend yield of 0.97%.

Computershare Limited

Computershare Limited (ASX: CPU), which is recognised as a global leader in transfer agency and share registration, employee equity plans, mortgage servicing as well as other financial services, is another IT sector player that has been consistently providing dividend on a year on year basis.

In FY2015, the company paid its shareholders a dividend of A$0.31 per share, which reached A$0.44 in FY2019.

FY2019 Highlights (ended 30 June 2019)
  • Revenue generated by the company in FY2019 from its continuing operations went up by 2.5% to A$2.35 billion.
  • Net profit after tax improved by 38.5% to A$415.73 million.
  • CPU declared a final dividend of A$0.23 per share in FY2019.

Computershare Limited

Computershare Limited asx

Stock Performance:

The shares of CPU have given a negative YTD return of 6.41%, while its last one month return stands at 4.19%. The stock opened at a price of A$15.800 and was trading at A$15.945 on 16 September 2019 (AEST 12:21 PM), up 0.22% from its previous close. CPU has a market cap of A$8.64 billion with ~ 542.96 million outstanding shares, PE ratio of 14.57x and annual dividend yield of 2.77%.

Link Administration Holdings Limited

Link Administration Holdings Limited (ASX: LNK), a market leader in providing technology-enabled administration solutions, has been consistently rewarding its shareholders with dividend for the past four years. The company employs a staff of more than 7,000 people, who are working in 17 jurisdictions. LNK clients include some of the largest superannuation funds in Australia along with some of the largest corporations in the world.

In FY2016, LNK paid its shareholders a dividend of A$0.08, which reached A$0.21 in FY2019.

FY2019 Highlights (ended 30 June 2019)
  • In FY2019, statutory NPAT of the company increased by 123% year-on-year to A$320 million.
  • Operating EBITDA grew by 6% to A$356 million.
  • Revenue went up by 17% to A$1.403 billion. Recurring revenue accounted for 81% of the total revenue recorded during the year.
  • A fully franked final dividend of A$0.125 per share was declared during the period. Thus, dividend for the full year reached A$0.205 per share.

Link Administration Holdings Limited asx

Stock Performance:

The shares of LNK have given a negative YTD return of 15.97%, while its six months return stands at 25.92%. The stock opened at a price of A$5.600 and was trading at A$5.660 on 16 September 2019 (AEST 12:33 PM), up 0.533% as compared to its previous closing price. LNK has a market cap of A$3.01 billion with ~ 533.95 million outstanding shares, PE ratio of 9.39x and annual dividend yield of 3.64%.

Technology One Limited

Technology One Limited (ASX: TNE) is Australia’s largest enterprise SaaS company and has offices across six countries. TNE has consistently paid its shareholders with dividend for the last five years. From FY2015 to FY2018, the dividend offered grew every year; however, there was a fall in the dividend amount paid in FY2019.

In FY2015, TNE paid a dividend of A$0.09 per share which reached A$0.11 in FY2018. However, in FY2019, TNE announced a dividend of A$0.03.

1H FY2019 Highlights (ended 31 March 2019)
  • Revenue of the company from its ordinary activities increased by 5% to A$129.29 million.
  • Net profit after tax increased by 119% to A$17.92 million.
  • TNE in 1H FY2019 declared a dividend of A$0.0315 per share.

Technology One Limited

Technology One Limited asx

Stock Performance:

The shares of TNE have given a decent YTD return of 17.02%, while its six months return stands at -8.88%. The stock opened at a price of A$7.040 and was trading at A$6.935 on 16 September 2019 (AEST 12:39 PM), down 2.048% as compared to its previous closing price. TNE has a market cap of A$2.25 billion, ~ 317.83 million outstanding shares and annual dividend yield of 1.31%.

Appen Limited

Appen Limited (ASX: APX) is known as the global leader in developing first-class, human annotated datasets that are used for machine learning as well as artificial intelligence. The company holding an expertise in 180 + languages has more than one million skilled contractors along with most advanced AI-assisted data annotation platform available in the industry.

Since the last five years, Appen has rewarded its shareholders with dividend, which grew every year. From FY2015 to FY2019, the dividend amount increased eight times. The dividend offered was A$0.01 in FY2015 and by FY2019, it reached A$0.08 in FY2019.

1H FY2019 Highlights (ended 30 June 2019)
  • Revenue generated by APX in FY2019 improved by 60% to A$245.1 million.
  • The company reported a 48% growth in statutory EBITDA and an 81% increase in underlying EBITDA to A$46.3 million.
  • Underlying EBITDA margins grew from 16.8% to 18.9%.
  • The company announced a dividend of A$0.04 per share (partially franked).

Appen Limited

Appen Limited asx

Stock Performance:

The shares of APX have given a decent YTD return of 70.62%. The stock opened at a price of A$21.560 and was trading at A$21.230 on 16 September 2019 (AEST 12:47 PM), down 2.793% as compared to its previous closing price. APX has a market cap of A$2.64 billion with ~ 120.98 million outstanding shares, PE ratio of 51.72x and annual dividend yield of 0.37%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Checkout our Free Dividend Stocks Report

Specially made for income-hungry investors, Invest in growing Franked Dividends an opportunity that should not be missed.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report