Growth AND dividends? 2 ASX tech shares that also pay you income

Technology companies are stereotyped as going for growth at all costs, but some actually pay you a decent distribution at the same time.

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The debate between investment styles always seems to be very binary.

You are either a fan of growth stocks or dividend shares. You are shooting for a 10-bagger, or you are cashing in on regular income.

But what if I told you you can have your cake and eat it too?

The industry that most typifies growth shares is technology

The products and services are modern or future-facing, and they are usually scalable. The businesses are usually seeking to expand market share or the addressable market itself.

So if you combine a technology provider with dividend payouts, you have the best of both worlds.

Here are two tech stocks that fit that criteria:

A buying window open right now

Tech distributor Dicker Data Ltd (ASX: DDR) has seen its share price almost triple over the past five years.

That's despite the stock almost halving since the market turned against tech shares 18 months ago.

Despite this growth, Dicker Data pays out an amazing 4.72% dividend yield fully franked.

The stock has dipped 20.25% year to date, potentially opening up a nice buying opportunity.

The Motley Fool's Bronwyn Allen reported last week that "the digital transformation megatrend is providing a mighty nice tailwind for further growth" for Dicker Data.

"Morgan Stanley has an outperform rating on Dicker Data shares, with a 12-month price target of $10. That implies a potential upside of 23%."

According to CMC Markets, two out of the five analysts that currently cover the stock recommend it as a strong buy.

The building blocks for artificial intelligence

There is no doubt artificial intelligence is the hot topic currently, not just among investors, but in society in general.

But such sophisticated capabilities require tremendous amounts of computing power to run.

This means that a company like Altium Limited (ASX: ALU) could be in prime position to cash in on the trend.

The company, which originated in Australia but is now headquartered in California, makes software for designing printed circuit boards (PCBs).

These are the basic building blocks for computers and electronic devices.

According to scientist and PCB expert Zachariah Peterson, Altium Designer software is useful for embedded AI developers.

"The CAD features in Altium Designer enable all aspects of systems and product design, ranging from packaging and PCB layout, and up to harness and cable design," he said last month on a blog post titled The Path Forward for Embedded AI.

"When you've finished your design, and you want to release files to your manufacturer, the Altium 365 platform makes it easy to collaborate and share your projects."

At a 1.36% dividend yield, the income production is not quite as impressive as Dicker Data.

But it's a trade off for potentially greater growth potential. If you held Altium shares over the past decade, it would be an amazing 27-bagger for you now.

Motley Fool contributor Tony Yoo 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 Altium and Dicker Data. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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