Earnings season is underway and dividend announcements are on investors’ minds.
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ASX 200 technology stocks led the market last week, rising 1.99%, while the benchmark S&P/ASX 200 Index (ASX: XJO) dipped 0.24%.
Earnings season is underway, and with dividend announcements on investors’ minds, let’s check out the forecasts for ASX 200 technology dividends this year.
Dividend forecasts for ASX 200 technology stocks
Let’s take a look at the forecast 2025 dividend yields for the 15 largest ASX 200 technology stocks by market capitalisation.
The following chart shows the consensus analysts’ forecasts for 2025 dividends, as published on the CommSec trading platform.
We’ve calculated the dividend yields based on stock prices at the time of writing.
We’ve also included the dividend amounts paid in 2024 so you can compare them to the 2025 forecasts.
These ASX 200 technology stocks are listed in order of market cap from largest to smallest.
| ASX 200 technology stock | 2024 dividend | Forecast 2025 dividend | Yield |
| WiseTech Global Ltd (ASX: WTC) | 16.9 cents | 21.4 cents | 0.17% |
| Xero Ltd (ASX: XRO) | N/A | N/A | N/A |
| TechnologyOne Ltd (ASX: TNE) | 22.4 cents | 23.8 cents | 0.74% |
| Nextdc Ltd (ASX: NXT) | N/A | N/A | N/A |
| Life360 Inc (ASX: 360) | N/A | N/A | N/A |
| Codan Ltd (ASX: CDA) | 22.5 cents | 25.5 cents | 1.5% |
| Macquarie Technology Group Ltd (ASX: MAQ) | N/A | N/A | N/A |
| Siteminder Ltd (ASX: SDR) | N/A | N/A | N/A |
| Iress Ltd (ASX: IRE) | 13.5 cents | 30 cents | 3.3% |
| Objective Corporation Ltd (ASX: OCL) | 17 cents | 12 cents | 0.71% |
| Nuix Ltd (ASX: NXL) | N/A | N/A | N/A |
| Dicker Data Ltd (ASX: DDR) | 45 cents | No forecast available | N/A |
| Megaport Ltd (ASX: MP1) | N/A | N/A | N/A |
| Gentrack Group Ltd (ASX: GTK) | N/A | N/A | N/A |
| Hansen Technologies Limited (ASX: HSN) | 5 cents | 8 cents | 1.42% |
As you can see, not too many of the top 15 ASX 200 technology stocks pay dividends.
And those that do, don’t pay much compared to stocks in other sectors.
Nonetheless, Iress shares are expected to pay the highest dividend yield of this group in 2025.
The software provider will announce its 1H FY25 results and interim dividend on 24 February.
Why are dividend yields so low?
The ASX 200 tech sector generally does not pay high dividend yields.
In 2024, dividends made up just 0.36% of the technology sector’s total return of 49.9%.
One reason ASX 200 technology companies do not pay high dividends is that they prefer to reinvest earnings for future growth.
Some tech companies are not yet profitable, relying on debt to fund their growth. So, dividends are obviously out of the question for them.
Tech companies also can’t rest on their laurels.
Advancements in technology occur daily, and every tech company has to keep up with change to ensure their products and services do not become inferior.
This requires constant new investment and innovation.
While they may not pay great dividends, ASX 200 technology stocks delivered the best capital growth of the 11 market sectors last year, rising 49.54%.
Its nearest rival was the financials sector, up 33.72%.
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Gentrack Group, Life360, Megaport, Objective, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Dicker Data, Gentrack Group, Objective, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Nuix and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.