Ares Management Corporation Declares Quarterly Dividend of $1.35 (NYSE:ARES)

Key Points

• Ares Management declared a quarterly dividend of $1.35 per share (payable June 30) with an ex‑dividend/record date of June 16, implying an annualized dividend of $5.40 and a yield of about 4.5%.
• The firm has raised its dividend for seven consecutive years but currently has a high payout ratio (~83.1%); analysts expect ~$7.53 EPS next year, which would lower the projected payout ratio to ~71.7%, though dividend coverage could be vulnerable if earnings fall.
• Shares traded up ~1.6% to $119.26 (market cap ~$39.3B) and carry a high P/E (~70.6); Wall Street consensus is a "Moderate Buy" with an average target price of about $165.31.

Ares Management Corporation (NYSE:ARES - Get Free Report) declared a quarterly dividend on Friday, May 1st. Stockholders of record on Tuesday, June 16th will be given a dividend of 1.35 per share by the asset manager on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Tuesday, June 16th.

Ares Management has raised its dividend by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 7 consecutive years. Ares Management has a dividend payout ratio of 83.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Ares Management to earn $7.53 per share next year, which means the company should continue to be able to cover its $5.40 annual dividend with an expected future payout ratio of 71.7%.

Ares Management Trading Up 1.6%

NYSE:ARES traded up $1.86 during midday trading on Friday, hitting $119.26. 4,531,568 shares of the company traded hands, compared to its average volume of 3,731,424. The firm has a market capitalization of $39.29 billion, a P/E ratio of 70.57, a P/E/G ratio of 0.99 and a beta of 1.52. The firm's fifty day moving average is $110.17 and its 200-day moving average is $139.58. Ares Management has a 12-month low of $95.80 and a 12-month high of $195.26. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.86.

Ares Management (NYSE:ARES - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The asset manager reported $1.24 EPS for the quarter, missing the consensus estimate of $1.34 by ($0.10). Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same quarter in the previous year, the business earned $1.09 EPS. On average, sell-side analysts predict that Ares Management will post 6.17 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Raymond James Financial upgraded shares of Ares Management from a "market perform" rating to a "strong-buy" rating and set a $157.00 target price for the company in a report on Monday, February 9th. The Goldman Sachs Group cut their price target on shares of Ares Management from $165.00 to $131.00 and set a "buy" rating on the stock in a report on Tuesday, April 7th. Zacks Research lowered shares of Ares Management from a "hold" rating to a "strong sell" rating in a research report on Monday, April 6th. Morgan Stanley decreased their price objective on shares of Ares Management from $178.00 to $163.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 21st. Finally, Wolfe Research set a $210.00 target price on Ares Management and gave the company an "outperform" rating in a research note on Wednesday, January 7th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $165.31.

Ares Management Company Profile

Ares Management Corporation NYSE: ARES is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.

Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.

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