Occasionally when looking through the wide selection of socks available onthe market you come across one that looks and feels different than the rest. With this backdrop, I am covering Kelly Partners group (ASX:KPG) today.
KPG is a listed accounting firm with 35 offices in 28 locations all around Australia.
There were a few distinct features that piqued my interest.
First, since 2019, the company has been very open and transparent about its 5 year vision of doubling revenue and NPATA. It has openly communicated its progress toward achieving that goal to investors. In fact in the most recent business update the company is well on track to achieve that goal.
The other thing that interested me is that this stock pays a monthly dividend which it proudly says it has done since 2021. The company aims to maintain a through-the-cycle payout ratio of 50% - 70% of underlying NPATA whilst also growing dividend at greater than 10% per annum! A lofty goal indeed. Though I note, with interes,t that the company has said over the next 6-12 months it will review its policy as it may move to a "no dividend policy" if it feels that the optimal capital allocation is to keep those profits in house and keep reinvesting into the business. Something it should consider given the +40% return on invested capital the company says it is achieving. Also given the yield has fallen so much on account or the price rise no one will notice anyway.
Finally their level of transparency is commendable and it is not uncommon for quotes from famous investors to be intermingled with business goals and objectives. In fact reading the company profit results are both a fiscal insight and investor education bundled into one. On the surface they have a strong investor focus and readers may wish to gain a sense of that by reading the “Owners Manual” for the company which they make public on their website and you can read it here. This is a MUST read!!!!
This is a company who on the surface and on past behaviour has the investor front of mind. (Even their newsletter is named “Quality Shareholder”. They also champion the inclusion of…
