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 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.
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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.
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 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.
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.
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