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Increased dividend sees Sage become more appealing to income seekers
•Sage results in line with expectations
•Total divided increased by 25%
•The Share Centre continues to recommend investors ‘hold’ Sage
As accountancy software company, Sage, reports results for the 12 months to 30 September Nick Raynor, investment research analyst at The Share Centre, explains what this mean for investors.
“Sage reported results in line with expectations with revenues for the period at £1.48bn and pre-tax profits rising by 8% to £352.6m. The company is focusing on longer term opportunities despite the increasing challenges facing the SMEs it services.
“Income seeking investors may be attracted by news that the total dividend has been increased by 25%. This now brings the yield to 3.5% which, although is still short of the FTSE average, is an improvement and may see the stock become more appealing.
“Stability is key for Sage. Its good balance sheet and large international customer base has helped the company withstand the difficult economic conditions. The share price has been holding up relatively well recently and has maintained value since November last year.
“We continue to recommend investors ‘hold’ Sage and income seekers will further benefit from the increased dividend. However, there are still higher yielding stocks available and those seeking growth will find better opportunities elsewhere in the market.”
THIS DATA IS PROVIDED BY THE SHARE CENTRE. THIS IS NOT INTENDED TO CONSTITUTE AN OFFER OR AGREEMENT TO BUY OR SELL INVESTMENTS.
Risk Warnings:
Investing in general, and the products and services mentioned above may not be suitable for all: if in doubt, individuals should seek independent financial advice. The value of investments and the income from them can go down as well as up and investors may not get back their original investment. Past performance is not a reliable indicator of future performance.
The bases and levels of taxation relating to ISAs, CTFs and SIPPs are subject to change and the value of these tax allowances may depend upon the circumstances of the individual.
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Back2011-11-30 10:49:04 © Moneyextra.com