2 top ASX tech shares to buy and hold beyond 2026

Here we look at 2 ASX tech shares with strong long term growth prospects: Dicker Data Ltd (ASX: DDR) and Bravura Solutions Ltd (ASX: BVS).

Phil Harpur

Phil Harpur has been contributing to Motley Fool Australia as a Freelance Writer since late 2019. Phil has spent the last 25 years working as a Senior Technology Analyst for some of the leading global technology research firms. Over the years, his market insights have been quoted in publications such as the AFR, SMH and the Australian, and he has appeared on business TV programs including Bloomberg, CNBC, Fox Business and the ABC. Phil is passionate about the share market and investing. He has post-graduate qualifications in Applied Finance and Investment from the Securities Institute of Australia. In his spare time, Phil likes to chill out listening to his favourite jazz artist or hanging out at the beach.

Published August 17, 2020 1:43 pm AEST

The ASX is home to a growing number of exciting tech companies. Each year the number of listed ASX tech shares continues to grow. Just a decade ago this segment was dominated by the traditional sectors of telecommunications and IT services. However, sector coverage has expanded massively since then. It now also includes ASX tech shares linked with a growing number of exciting industries such as data centres, cloud computing, the Internet of Things (IoT) and the buy now, pay later (BNPL) industry.

Here we look at 2 ASX tech shares that are on my buy list right now: Dicker Data Ltd (ASX: DDR) and Bravura Solutions Ltd (ASX: BVS).

2 ASX tech shares to buy and hold for the long term

Dicker Data

Dicker Data is a local wholesale distributor of computer hardware, software and cloud-based solutions. The company recorded unaudited revenue for the half year to June 2020 amounting to $1 billion. That was a solid 18.3% increase over the prior corresponding period. Heightened demand for remote working solutions during the pandemic was a significant reason for this increase. This also contributed to the strong Dicker Data share price growth we've witnessed since April.

What really appeals to me about Dicker Data as an ASX tech share is that it pays an attractive fully franked dividend. At the time of writing, it provides a forward dividend yield of 4.04%. Grossed up, that amounts to an annual return of 5.77%.

I believe that Dicker Data is well placed to maintain this strong dividend in the years to come, as well as seeing additional share price growth. Growth will be driven by its entrenched local market position and a growing demand for local ICT services.

Bravura

Another ASX tech share that is in my buy zone right now is Bravura. This locally based fintech company provides mission-critical enterprise software solutions for the wealth management and funds administration industries.

Despite a dip in the early phase of the coronavirus pandemic, this locally based tech company has seen very strong share price growth over the past 3 years.

I am confident that the Bravura growth story is set to continue over the next few years, driven by increased demand for its industry leading wealth and fund management product set.

Bravura also pays a forward annual dividend yield of 2.5% at the time of writing.

Foolish takeaway

Dicker Data and Bravura are both quality ASX tech shares with strong growth prospects over the next 5 years. In addition, both companies pay an attractive dividend. That's rare to find amongst tech companies.

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