The ASX growth share space is a great place to find businesses that are also paying a growing dividend income to investors.
I wouldn't expect a high dividend yield from these sorts of businesses. They usually have a high price/earnings (P/E) ratio which reflects expectations of long-term growth, and it'd be understandable for them to have a lower dividend payout ratio as they re-invest more of the profit back into the business rather than paying big dividends.
With that in mind, below are three ASX growth shares that are delivering good dividend growth and strong earnings growth.
Altium Limited (ASX: ALU)
Altium is a leading ASX tech share, which is one of the world's leading electronic PCB software businesses. It's benefiting from a growing number of devices becoming electronic and connected.
In the FY23 first-half result, it reported that revenue rose 17%, net profit after tax (NPAT) grew 30% and the interim dividend was increased by 19%.
The last two dividends paid by Altium amount to a total of 51 cents per share, which translates into a dividend yield of 1.3%, excluding franking credits. The business has grown its annual dividend per share every year since it re-instated the dividend in 2012.
TechnologyOne Ltd (ASX: TNE)
This ASX growth share offers enterprise resource planning (ERP) software for large organisations such as businesses and government entities.
TechnologyOne has been rapidly growing its software as a service (SaaS) offering, which is helping grow its revenue and margins. In the FY23 first-half result, it reported that total revenue increased 22%, net profit after tax went up 24% and the interim dividend was increased by 10%.
The last two dividends paid by the company amount to a trailing dividend of 1.07%, excluding franking credits.
WiseTech Global Ltd (ASX: WTC)
WiseTech is a technology ASX growth share that provides CargoWise software to global logistics and freight forwarders.
In the FY23 first-half result, it reported a 35% increase in total revenue, a 41% rise in statutory net profit and a 39% rise in the interim dividend. It's benefiting from increasing global logistics and a growing market share.
Adding the last two dividends from the business amount to a total annual payment of 13 cents, which equates to a dividend yield of 0.17%, excluding franking credits.
Foolish takeaway
Businesses that are growing their earnings at a strong rate have the ability to grow their dividend at a healthy pace too, which can compound into a much larger payment in the coming years. I'm confident that in five years, the dividends from each of these businesses could be much larger.
