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

Key Points

• Ares Management declared a quarterly dividend of $1.35 per share, payable September 30 to shareholders of record on September 16. The annualized dividend is $5.40, yielding approximately 4.2%.
• The dividend has increased for seven consecutive years, but its current 83.1% payout ratio leaves limited earnings cushion. Analysts expect next year’s earnings to support a lower projected payout ratio of 73.7%.
• Ares reported quarterly EPS of $1.29, narrowly exceeding estimates, while revenue rose 5.8% year over year. Institutional investors own approximately 50.03% of the company, with major holders including Vanguard, Geode Capital, and Massachusetts Financial Services.

Ares Management Corporation (NYSE:ARES - Get Free Report) announced a quarterly dividend on Friday, July 31st. Shareholders of record on Wednesday, September 16th will be given a dividend of 1.35 per share by the asset manager on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 4.2%. The ex-dividend date is Wednesday, September 16th.

Ares Management has raised its dividend payment by an average of 0.2%annually over the last three years and has increased its dividend every year for the last 7 years. Ares Management has a 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 tumble. Equities analysts expect Ares Management to earn $7.33 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 73.7%.

Ares Management Stock Performance

Shares of ARES traded up $4.19 during mid-day trading on Friday, reaching $128.31. The company's stock had a trading volume of 4,174,760 shares, compared to its average volume of 3,204,200. Ares Management has a 1-year low of $95.80 and a 1-year high of $195.26. The stock has a market cap of $42.32 billion, a P/E ratio of 59.68, a PEG ratio of 1.11 and a beta of 1.51. The business has a 50-day simple moving average of $123.75 and a two-hundred day simple moving average of $123.94. The company has a current ratio of 0.23, a quick ratio of 0.23 and a debt-to-equity ratio of 0.96.

Ares Management (NYSE:ARES - Get Free Report) last posted its earnings results on Friday, July 31st. The asset manager reported $1.29 earnings per share for the quarter, topping analysts' consensus estimates of $1.28 by $0.01. Ares Management had a return on equity of 22.14% and a net margin of 10.54%.During the same quarter last year, the firm posted $1.03 EPS. Ares Management's revenue was up 5.8% compared to the same quarter last year. As a group, equities research analysts anticipate that Ares Management will post 5.98 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ares Management

A number of institutional investors have recently modified their holdings of the business. Vanguard Group Inc. increased its position in Ares Management by 20.2% during the fourth quarter. Vanguard Group Inc. now owns 26,050,425 shares of the asset manager's stock worth $4,210,530,000 after acquiring an additional 4,373,955 shares during the period. Massachusetts Financial Services Co. MA grew its position in shares of Ares Management by 26.3% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 5,705,599 shares of the asset manager's stock worth $922,196,000 after purchasing an additional 1,187,174 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Ares Management by 55.7% during the fourth quarter. Geode Capital Management LLC now owns 5,489,004 shares of the asset manager's stock worth $883,716,000 after purchasing an additional 1,963,460 shares during the period. Capital International Investors increased its holdings in shares of Ares Management by 0.3% during the fourth quarter. Capital International Investors now owns 4,257,710 shares of the asset manager's stock worth $688,176,000 after purchasing an additional 14,516 shares during the period. Finally, Principal Financial Group Inc. increased its holdings in shares of Ares Management by 4.4% during the first quarter. Principal Financial Group Inc. now owns 4,009,291 shares of the asset manager's stock worth $437,417,000 after purchasing an additional 169,598 shares during the period. Institutional investors own 50.03% of the company's stock.

About Ares Management

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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