Ares Management Corporation (NYSE:ARES) Shares Set to Pay Quarterly Dividend of $1.35

Key Points

• Ares Management declared a quarterly dividend of $1.35 per share, payable December 31 to shareholders of record December 17. The dividend implies $5.40 in annual payments and a 4.2% yield.
• The dividend has been increased annually for seven years, but Ares’ 83.1% payout ratio leaves limited room if earnings weaken. Analysts expect a lower future payout ratio of 75.1% based on projected earnings.
• Ares’ latest quarterly results slightly exceeded expectations, with EPS of $1.26 versus $1.25 forecast and revenue of $1.43 billion versus $1.24 billion expected, although revenue declined 13.5% year over year.

Ares Management Corporation (NYSE:ARES - Get Free Report) declared a quarterly dividend on Thursday, October 29th. Stockholders of record on Thursday, December 17th will be paid a dividend of $1.35 per share by the asset manager on Thursday, December 31st. This represents a $5.40 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Thursday, December 17th.

Ares Management has raised its dividend payment by an average of 0.2% per year over the last three years and has raised its dividend every year for the last 7 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 decline. Analysts expect Ares Management to earn $7.19 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 75.1%.

Ares Management Stock Up 3.0%

Shares of Ares Management stock traded up $3.75 during midday trading on Thursday, reaching $127.57. 2,391,909 shares of the company's stock traded hands, compared to its average volume of 2,897,374. The company has a market cap of $42.13 billion, a price-to-earnings ratio of 58.52, a price-to-earnings-growth ratio of 1.11 and a beta of 1.53. The company's 50 day simple moving average is $126.56 and its 200 day simple moving average is $125.74. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.26 and a current ratio of 0.26. Ares Management has a 52 week low of $95.80 and a 52 week high of $181.19.

Ares Management (NYSE:ARES - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The asset manager reported $1.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.25 by $0.01. The firm had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.24 billion. Ares Management had a net margin of 10.63% and a return on equity of 25.42%. Ares Management's revenue for the quarter was down 13.5% on a year-over-year basis. During the same period in the prior year, the company posted $1.15 earnings per share. Equities analysts expect that Ares Management will post 5.80 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ares Management

A number of institutional investors have recently added to or reduced their stakes in the company. Triumph Capital Management raised its position in shares of Ares Management by 127.3% during the 2nd quarter. Triumph Capital Management now owns 250 shares of the asset manager's stock valued at $28,000 after acquiring an additional 140 shares during the last quarter. CoreCap Advisors LLC grew its stake in shares of Ares Management by 178.0% during the third quarter. CoreCap Advisors LLC now owns 253 shares of the asset manager's stock worth $29,000 after purchasing an additional 162 shares during the period. Wellington Altus USA Inc. acquired a new stake in shares of Ares Management during the second quarter worth $35,000. Anchor Investment Management LLC bought a new stake in Ares Management in the second quarter valued at about $38,000. Finally, Root Financial Partners LLC bought a new stake in Ares Management in the third quarter valued at about $41,000. 50.03% of the stock is owned by institutional investors and hedge funds.

Ares Management Company Profile

Ares Management Corporation NYSE: ARES is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.

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