Stock of the Day (Saturday) (LSE: SGE)
- HowieG
- Jun 7
- 1 min read
Another solid, dependable pick from the FTSE 100 today, Sage Group plc, a British software company that’s been around since the early 1980s. Based in Newcastle, Sage develops accounting, payroll, HR, and enterprise software used by millions of small and medium-sized businesses around the world. They operate in over 20 countries, and serve over 6 million customers globally. It’s not flashy, but that’s what makes it stand out.
The business model is solid, recurring revenues through subscriptions, and recently a stronger push into cloud services and automation. They're even getting into the AI space with their new Sage Copilot assistant, which is designed to help automate admin tasks for businesses. So while it might look like a sleepy software firm on the surface, they’re clearly working on staying ahead.
From a stock perspective, it’s not exactly “cheap” trading on a P/E ratio of around 38 but for that premium, you’re getting consistent top-line growth and a strong balance sheet. The dividend yield is modest at around 1.6%, but it’s growing, and the company has a long history of steady payouts, which makes it an attractive holding for long-term dividend investors.
This is one of those “boring is beautiful” stocks. It’s not going to shoot to the moon, but it’s the kind of name that can sit comfortably in a dividend-growth and compound quietly over the years. Especially appealing if you’re building out a portfolio of reliable UK-based income stocks with long-term potential. This is one I currently hold and will be buying again as soon as i get more free funds!
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