SGPYY - Is Sage The Perfect Dividend Growth Stock?
Accounting software firm Sage (SGPYY) (SGGEF) has generated dividend growth of more than 8% per year over the last decade. That's impressive, but is it enough to justify the company's measly 2.4% dividend yield?
At first glance I'd say yes. After all, a 2.4% income growing at 8% per year will give you a total annual return of 10.4% if the share price grows in line with the dividend.
But investing is not quite that simple, so we'll need to look at Sage and its financial results in a little more detail.