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Alternative Asset Managers Boost Dividends Amid Growth

Alternative asset managers KKR, Apollo, and Blue Owl are increasing dividends, signaling strong shareholder returns. This trend indicates growth potential in private equity and credit investments, attracting investor attention amid market uncertainties.

Date: 
AI Rating:   8
Earnings and Revenue Growth Insights
In the recent analysis, three notable alternative asset managers—KKR & Co. Inc., Apollo Global Management, and Blue Owl Capital—are raising their dividends. This trend reflects a strong willingness to return capital to shareholders, an essential factor for investor confidence during uncertain times.

KKR Insights
KKR announced a 5.7% increase in its quarterly dividend, bringing the annualized figure to 74 cents. They are focusing on an ambitious goal of reaching $1 trillion in assets under management (AUM) by 2030 while also targeting a significant increase in adjusted net income (ANI) per share to $15 in the coming years. Currently, KKR has reported a 15% growth in AUM year-over-year and a remarkable 37% growth in LTM ANI. These figures indicate robust revenue growth and profitability, positioning KKR strongly within the market.

Apollo's Performance
Apollo Global Management has also seen favorable developments, boosting its dividend by over 10%. They achieved record fee-related earnings of $559 million last quarter alongside substantial inflows of $25 billion in capital for investment opportunities. This performance denotes substantial revenue growth and an effective utilization of capital, which are both attractive from a shareholder perspective.

Blue Owl's Growth
Blue Owl Capital has demonstrated impressive growth through its strategy of investing in successful alternative investment managers. By raising its dividend by 25%, Blue Owl is providing a substantial yield of nearly 5%. The firm's focus on credit strategies within its AUM is a solid approach, allowing for diversification and a high potential for revenue growth. This trend in growing dividends signifies a commitment to shareholder returns and reflects positively on its financial health.

Overall, the willingness to increase dividends among these firms, combined with strong earnings and revenue growth, enhances their attractiveness as investment opportunities amid the evolving dynamics of alternative asset management.
Stocks:  KKR APO OWL