Knights Group Holdings Plc (LON:KGH): A Dividend Gem in the Making

As an income-focused investor, you're always on the lookout for undervalued assets that offer attractive yields and stable cash flows. Today, we're going to take a closer look at Knights Group Holdings Plc (LON:KGH), a UK-based holding company that's about to pay a dividend and might just be the hidden gem you've been searching for.



Knights Group Holdings plc is primarily engaged in the provision of legal and professional services through its subsidiaries. The company invests in various sectors, including agriculture and the food supply chain, aviation, consumer and retail, energy, waste and natural resources, financial and professional services, gambling, healthcare, industrials, transport and support services, property management and development, technology, media and telecommunications. With a market capitalization of £103 million and an enterprise value of £200.55 million, KGH is a relatively small-cap company with big potential.

One of the key attractions of KGH is its consistent dividend history. The company has paid dividends since 2019, with the dividend per share increasing over time. The upcoming dividend payment is scheduled for 14 March 2025, with a dividend per share of £1.76. This represents a 9% increase from the previous interim dividend of £1.61 per share. The company's dividend growth rate over the past year is an impressive 10.71%, indicating a strong commitment to returning capital to shareholders.

Another appealing aspect of KGH is its attractive dividend yield. With a current yield of 4.0%, the company offers a higher yield than the average dividend yield of REITs, which is typically around 3-4%. This makes KGH an attractive option for income-focused investors looking for a stable and growing income stream.

When it comes to valuation, KGH appears to be undervalued compared to its peers and the broader market. The company has a trailing P/E ratio of 9.72 and a forward P/E ratio of 5.20, which are significantly lower than the average P/E ratios of the broader market. Additionally, KGH has a price-to-book (P/B) ratio of 1.02, which suggests that the company is trading at a reasonable valuation compared to its peers and historical averages.



In conclusion, Knights Group Holdings Plc (LON:KGH) is an attractive option for income-focused investors looking for a stable and growing income stream. With a consistent dividend history, an impressive dividend growth rate, an attractive dividend yield, and a reasonable valuation, KGH is a company worth considering for your portfolio. As the company is about to pay a dividend, now is the perfect time to take a closer look at KGH and consider adding it to your income-focused portfolio.