Sage Group
Website:
Sage Group
Index:
FTSE 100
EPIC: SGE
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Software
Market Cap:
£7.83B
Payout Frequency: Semi-Annual
Sage Group Dividend Analysis and Summary
Dividend declaration and timetable
- Type: Interim dividend
- Amount: 8.05p per share (up 8% year-on-year from 7.45p)
- Record date: 05/06/2026
- Ex-dividend date: 04/06/2026
- Payment date: 03/07/2026
- Policy: Progressive dividend, intending to grow over time
Coverage and affordability
- H1 underlying basic EPS: 23.7p, implying interim cover of ~2.9x (23.7p/8.05p).
- Cash generation: Underlying cash conversion 116%; H1 free cash flow £241m.
- Balance sheet and liquidity: £1.1bn cash and available liquidity; net debt/underlying EBITDA at 2.0x (within stated 1–2x range).
Financial and operational support
- Underlying revenue up 11% and operating profit up 15%; margin expanded to 23.9%.
- ARR up 11% to £2,727m; 97% of group revenue is recurring; renewal rate by value 102%.
- Guidance: FY26 organic total revenue growth now expected to be above 9%; margins to trend upwards.
Capital allocation and structural considerations
- Share buybacks: £600m announced in H1 (two programmes of £300m each); the second programme runs to no later than 05/06/2026. Shares are being cancelled, lowering future dividend cash outflow and modestly enhancing DPS sustainability.
- Debt funding: New €500m 7-year notes (3.821%); leverage increased to 2.0x but remains within policy range.
- M&A: Acquisitions of Criterion (HCM), Akao, and post-period Doyen AI support cloud/AI strategy; integration and execution watched for cash demands.
Risks and flags for dividend stability
- Higher finance costs: Underlying net finance cost rose to £31m (H1 25: £18m) amid new debt issuance; further increases could pressure coverage if growth slows.
- Leverage: Net debt/EBITDA at the top of the target range (2.0x) after buybacks and M&A; limits headroom if conditions weaken.
- Execution risk around AI rollout and integrations (Criterion, Akao, Doyen AI) and continued migration to cloud-native products.
- FX translation and macro sensitivity, though mitigated by high recurring revenue and strong renewal rates.
Bottom line
- The interim dividend of 8.05p (ex-div 04/06/2026) is well-covered by earnings and cash flow, supported by double-digit ARR/revenue growth, margin expansion, and robust cash conversion.
- Ongoing buybacks and a progressive policy point to continued DPS growth, while rising finance costs and leverage near the top of the target range are the main watchpoints.
Read more
Sage Group Annual Dividend Yield - 2.64%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 08/01/2026 |
10/02/2026 |
Final |
14.4000p |
GBX |
| 04/06/2026 |
03/07/2026 |
Interim |
8.0500p |
GBX |
Total (Annual Dividends Per Share):
22.45p
Dividend Yield =
Annual Dividends Per Share (22.45p)
÷ Share Price (851.4p)
= 2.64%
Sage Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
03/07/2026 |
Interim |
8.0500p |
GBX |
| 08/01/2026 |
10/02/2026 |
Final |
14.4000p |
GBX |
| 29/05/2025 |
27/06/2025 |
Interim |
7.45p |
GBX |
| 09/01/2025 |
11/02/2025 |
Final |
13.50p |
GBX |
| 30/05/2024 |
28/06/2024 |
Interim |
6.95p |
GBX |
| 11/01/2024 |
09/02/2024 |
Final |
12.75p |
GBX |
| 01/06/2023 |
23/06/2023 |
Interim |
6.55p |
GBX |
| 12/01/2023 |
10/02/2023 |
Final |
12.10p |
GBX |
| 26/05/2022 |
17/06/2022 |
Interim |
6.30p |
GBX |
| 13/01/2022 |
10/02/2022 |
Final |
11.63p |
GBX |
| 27/05/2021 |
18/06/2021 |
Interim |
6.05p |
GBX |
| 14/01/2021 |
11/02/2021 |
Final |
11.32p |
GBX |
| 21/05/2020 |
12/06/2020 |
Interim |
5.93p |
GBX |
| 06/02/2020 |
02/03/2020 |
Final |
11.12p |
GBX |
| 30/05/2019 |
14/06/2019 |
Interim |
5.79p |
GBX |
| 07/02/2019 |
01/03/2019 |
Final |
10.85p |
GBX |
| 10/05/2018 |
01/06/2018 |
Interim |
5.65p |
GBX |
| 08/02/2018 |
02/03/2018 |
Final |
10.20p |
GBX |
| 11/05/2017 |
02/06/2017 |
Interim |
5.22p |
GBX |
| 09/02/2017 |
03/03/2017 |
Final |
9.35p |
GBX |
| 12/05/2016 |
03/06/2016 |
Interim |
4.80p |
GBX |
| 11/02/2016 |
04/03/2016 |
Final |
8.65p |
GBX |
| 14/05/2015 |
06/06/2015 |
Interim |
4.45p |
GBX |
| 12/02/2015 |
06/03/2015 |
Final |
8.00p |
GBX |
| 14/05/2014 |
06/06/2014 |
Interim |
4.12p |
GBX |
| 12/02/2014 |
10/03/2014 |
Final |
7.44p |
GBX |
| 10/06/2013 |
28/06/2013 |
Special |
17.00p |
GBX |
| 15/05/2013 |
07/06/2013 |
Interim |
3.69p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
6.950 |
13.500 |
|
GBX |
20.450 |
5.950 |
| 2023 |
6.550 |
12.750 |
|
GBX |
19.300 |
4.890 |
| 2022 |
6.300 |
12.100 |
|
GBX |
18.400 |
4.070 |
| 2021 |
6.050 |
11.630 |
|
GBX |
17.680 |
2.490 |
| 2020 |
5.930 |
11.320 |
|
GBX |
17.250 |
2.010 |
| 2019 |
5.790 |
11.120 |
|
GBX |
16.910 |
2.480 |
| 2018 |
5.650 |
10.850 |
|
GBX |
16.500 |
7.000 |
| 2017 |
5.220 |
10.200 |
|
GBX |
15.420 |
8.970 |
| 2016 |
4.800 |
9.350 |
|
GBX |
14.150 |
8.010 |
| 2015 |
4.450 |
8.650 |
|
GBX |
13.100 |
8.080 |
| 2014 |
4.120 |
8.000 |
|
GBX |
12.120 |
-56.910 |
| 2013 |
3.690 |
7.440 |
17.000 |
GBX |
28.130 |
|
Sage Group Dividend Calculator
Sage Group Dividend Growth
| Dividend Growth (1Y) |
7.16%
|
| Dividend CAGR (5Y) |
5.26%
|
| Years of Growth |
11
|
| Payout Ratio |
54.03%
|
| Buyback Yield |
4.4%
|
| Shareholder Yield |
6.91%
|
| P/E Ratio (TTM) | 21.9 |
|---|
| Forward P/E | 16.19 |
|---|
| P/FCF | 15.73 |
|---|
| Earnings Yield | 4.91% |
|---|
| FCF Yield | 6.36% |
|---|
| ROE | 75.56% |
|---|
| ROCE | 25.92% |
|---|
| Profit Margin | 14.62% |
|---|
| Operating Margin | 22.63% |
|---|
| Gross Margin | 92.56% |
|---|