KKR & Co. LP : KKR-US: Dividend Analysis : November 06th, 2017 (record date) : By the numbers : November 6, 2017

Our analysis is based on comparing KKR & Co. LP with the following peers – Och-Ziff Capital Management Group LLC Class A, Blackstone Group L.P., Apollo Global Management, LLC Class A, Fortress Investment Group LLC Class A, Carlyle Group L.P., Invesco Ltd., BlackRock, Inc. and Ares Management LP (OZM-US, BX-US, APO-US, FIG-US, CG-US, IVZ-US, BLK-US and ARES-US).

KKR & Co. LP’s dividend yield is 3.35 percent and its dividend payout is 33.33 percent. This compares to a peer average dividend yield of 3.43 percent and a payout level of 64.84 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 100 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), KKR-US paid a high quality dividend, which represents a yield of 3.30% at the current price.
  • Dividends paid during each of the last five years were consistently of high quality.
  • The ending cash balance, with a dividend coverage of 15.23x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), KKR-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 0.17x), investing cash flow (coverage of 6.08x), issuance cash flow (coverage of 1.39x) and twelve-month prior cash (coverage of 12.80x), for a total dividend coverage of 9.54x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 5.11 6.15 7.8 9.9 4.1 3.35
Dividend Payout (%) 38.01 70.43 175 156.44 108.47 33.33

A complete list of metrics and analysis is available on the company page.

Company Profile

KKR & Co. LP provides investment and private equity asset management services. It manages investments across multiple asset classes includes private equity, energy, infrastructure, real estate, credit and hedge funds. The firm operates business through four business segments: Private Markets, Public Markets and Capital Markets and Principal Activities. The Private Markets segment is comprised of the global private equity business, which manages and sponsors a group of investment funds and vehicles that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. The Public Markets segment is comprised primarily of the company fixed income businesses which manage capital in liquid credit strategies, such as leveraged loans and high yield bonds, and less liquid credit products, such as mezzanine debt, special situation assets, rescue financings, distressed assets, debtor-in-possession financings and exit financings. The Capital Markets segment combines the assets acquired in the Combination Transaction with the company’s global capital markets business. The Principal Activities segment manages the firm’s own assets and deploys capital to support and grow the businesses. The company was founded by Henry R. Kravis and George R. Roberts on June 25, 2007 and is headquartered in New York, NY.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.