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Apollo Global Management (APO) Announces 7.6% Dividend Hike
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Apollo Global Management, Inc. (APO - Free Report) has announced a sequential increase in its quarterly dividend. The company declared a quarterly cash dividend of 46 cents per share, marking an increase of 7.6% from the prior payout. The dividend will be paid out on May 31 to shareholders of record as of May 17.
The company has increased its dividend eight times during the last five years. Prior to the recent hike, APO increased its dividend by 7.5% to 43 cents per share in February 2023.
Currently, its payout ratio is 28% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Considering APO’s closing price of $112.07 on May 2, its dividend yield is currently pegged at 1.64%.
Apart from regular dividend payouts, APO has a share repurchase program in place. In February 2024, the company’s board of directors authorized the repurchase of up to $3 billion of its common shares. In the first quarter of 2024, the company repurchased $512.4 million shares. As of Mar 31, 2024, $2.49 billion shares remained available under the authorization. This program replaced the previous plan with an authorization to repurchase up to $500 million shares.
APO maintains a decent liquidity position. As of Mar 31, 2024, the company had a total cash and cash equivalents of $2.46 billion, while total debt was $3.6 billion. Given the decent liquidity position, the company is expected to sustain its capital distribution activities. Through this, APO will keep enhancing shareholder value.
The dividend hike of the company was announced along with its first-quarter earnings update. The company reported first-quarter 2024 earnings per share of $1.72, which missed the Zacks Consensus Estimate of $1.81. However, the bottom line compared favorably with $1.42 reported in the year-ago quarter.
Net income attributable to common shareholders was $1.4 billion, up 38.9% from the prior-year quarter.
Total Fee Related Revenues were $839 million, which increased 13.1% year over year. This was supported by a rise in management fees, capital solutions fees and fee-related performance fees.
Total assets under management were $671 billion, up 12.2% from the prior-year quarter. The rise was primarily due to increased inflows from Asset Management and Retirement Services, coupled with market appreciation.
The first-quarter result shows strength in APO’s core business, which will allow the firm to sustain itself in the current rapidly changing economy.
Over the past six months, shares of Apollo Global Management have gained 31.8% compared with the industry’s growth of 24.3%.
Last week, Hancock Whitney, Corp. (HWC - Free Report) announced an increase in its quarterly dividend. The company declared a quarterly cash dividend of 40 cents per share, marking a jump of 33.3% from the prior payout. The dividend will be paid out on Jun 14 to shareholders of record as of Jun 5.
The company has increased its dividend twice during the last five years. Prior to the recent hike, HWC increased its dividend by 11.1% to 30 cents per share in January 2023. Also, it has a five-year annualized dividend growth of 2.40%.
In April, South Plains Financial, Inc. (SPFI - Free Report) announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 14 cents per share, which marks an increase of 7.7% from the prior payout. The dividend will be paid out on May 13 to shareholders of record as of Apr 29.
The company has increased its dividend seven times during the last five years. Prior to the recent hike, SPFI increased its dividend by 8.3% to 13 cents per share in January 2023. Also, it has a five-year annualized dividend growth of 50.82%.
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Apollo Global Management (APO) Announces 7.6% Dividend Hike
Apollo Global Management, Inc. (APO - Free Report) has announced a sequential increase in its quarterly dividend. The company declared a quarterly cash dividend of 46 cents per share, marking an increase of 7.6% from the prior payout. The dividend will be paid out on May 31 to shareholders of record as of May 17.
The company has increased its dividend eight times during the last five years. Prior to the recent hike, APO increased its dividend by 7.5% to 43 cents per share in February 2023.
Currently, its payout ratio is 28% of earnings. This indicates that it retains adequate earnings for reinvestment and future growth initiatives while still delivering lucrative returns to its shareholders.
Considering APO’s closing price of $112.07 on May 2, its dividend yield is currently pegged at 1.64%.
Apart from regular dividend payouts, APO has a share repurchase program in place. In February 2024, the company’s board of directors authorized the repurchase of up to $3 billion of its common shares. In the first quarter of 2024, the company repurchased $512.4 million shares. As of Mar 31, 2024, $2.49 billion shares remained available under the authorization. This program replaced the previous plan with an authorization to repurchase up to $500 million shares.
APO maintains a decent liquidity position. As of Mar 31, 2024, the company had a total cash and cash equivalents of $2.46 billion, while total debt was $3.6 billion. Given the decent liquidity position, the company is expected to sustain its capital distribution activities. Through this, APO will keep enhancing shareholder value.
The dividend hike of the company was announced along with its first-quarter earnings update. The company reported first-quarter 2024 earnings per share of $1.72, which missed the Zacks Consensus Estimate of $1.81. However, the bottom line compared favorably with $1.42 reported in the year-ago quarter.
Net income attributable to common shareholders was $1.4 billion, up 38.9% from the prior-year quarter.
Total Fee Related Revenues were $839 million, which increased 13.1% year over year. This was supported by a rise in management fees, capital solutions fees and fee-related performance fees.
Total assets under management were $671 billion, up 12.2% from the prior-year quarter. The rise was primarily due to increased inflows from Asset Management and Retirement Services, coupled with market appreciation.
The first-quarter result shows strength in APO’s core business, which will allow the firm to sustain itself in the current rapidly changing economy.
Over the past six months, shares of Apollo Global Management have gained 31.8% compared with the industry’s growth of 24.3%.
Image Source: Zacks Investment Research
Currently, Apollo Global Management carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Companies Taking Similar Steps
Last week, Hancock Whitney, Corp. (HWC - Free Report) announced an increase in its quarterly dividend. The company declared a quarterly cash dividend of 40 cents per share, marking a jump of 33.3% from the prior payout. The dividend will be paid out on Jun 14 to shareholders of record as of Jun 5.
The company has increased its dividend twice during the last five years. Prior to the recent hike, HWC increased its dividend by 11.1% to 30 cents per share in January 2023. Also, it has a five-year annualized dividend growth of 2.40%.
In April, South Plains Financial, Inc. (SPFI - Free Report) announced a hike in its quarterly dividend. The company declared a quarterly cash dividend of 14 cents per share, which marks an increase of 7.7% from the prior payout. The dividend will be paid out on May 13 to shareholders of record as of Apr 29.
The company has increased its dividend seven times during the last five years. Prior to the recent hike, SPFI increased its dividend by 8.3% to 13 cents per share in January 2023. Also, it has a five-year annualized dividend growth of 50.82%.