April 30, 2025 a 11:31 am
APO: Dividend Analysis - Apollo Global Management, Inc.
Apollo Global Management, Inc. presents a notable dividend profile with a history of 15 years of dividend payments. The company's current dividend yield is modest, and it has exhibited a negative dividend growth over the last 3 and 5 years. This analysis will delve into the key financial metrics to determine the sustainability and potential of APO's dividends.
📊 Overview
A comprehensive overview of Apollo Global Management's dividend profile reveals its focus on consistent, albeit declining, dividend payments. This strategy positions APO as a firm that prioritizes shareholder returns through dividends.
| Attribute | Value |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 1.14 % |
| Current Dividend Per Share | 2.03 USD |
| Dividend History | 15 years |
| Last Cut or Suspension | None |
📉 Dividend History
The dividend history of APO highlights the company's commitment to delivering shareholder value through consistent payments. This history demonstrates the firm's ability to manage cash flow and sustain dividends over time, crucial for investor confidence.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.46 |
| 2024 | 1.82 |
| 2023 | 1.69 |
| 2022 | 1.60 |
| 2021 | 2.10 |
📈 Dividend Growth
Despite recent negative growth figures, understanding the dividend growth pattern is essential for assessing future expectations. Historical data suggests a decline in growth, yet past performance does not indicate future performance.
| Time | Growth |
|---|---|
| 3 years | -4.70 % |
| 5 years | -2.09 % |
The average dividend growth over 5 years is -2.09 %. This shows a decline, suggesting a cautious outlook on dividend expansion.
💡 Payout Ratio
Evaluating the payout ratios provides insight into the sustainability of APO's dividends. A moderate payout ratio signifies a balance between rewarding shareholders and retaining earnings for growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 25.98 % |
| Free cash flow-based | 35.58 % |
The EPS payout ratio of 25.98 % is modest, suggesting room for potential increase or investment, whereas the FCF payout ratio of 35.58 % indicates a more cautious capital allocation approach.
🔍 Cashflow & Capital Efficiency
Understanding cashflow dynamics is key to assessing financial health. APO's free cash flow yield and earnings yield are pivotal indicators of operational efficiency and profitability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.034 | 0.117 | 0.096 |
| Earnings Yield | 0.047 | 0.093 | -0.053 |
| CAPEX to Operating Cash Flow | 0 | 0 | 0.053 |
| Stock-based Compensation to Revenue | 0.028 | 0.031 | 0.049 |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | 1 | 0.947 |
The data reflects stability in cash flow and efficient use of capital. The continuity of positive free cash flow yield is promising for future growth and dividend payments.
⚖️ Balance Sheet & Leverage Analysis
Apollo’s financial structure highlights its strategic leverage use, balancing debt for growth with financial stability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.614 | 0.576 | 1.909 |
| Debt-to-Assets | 0.028 | 0.026 | 0.256 |
| Debt-to-Capital | 0.380 | 0.366 | 0.656 |
| Net Debt to EBITDA | -0.630 | -0.859 | -1.314 |
| Current Ratio | 0.800 | 0.816 | 0.926 |
| Quick Ratio | 0.800 | 0.816 | -4.688 |
| Financial Leverage | 21.903 | 22.322 | 7.463 |
The leverage ratios show adequate management of debt levels contributing to financial flexibility, maximizing shareholder value while minimizing risk.
🪙 Fundamental Strength & Profitability
A detailed assessment of the fundamental strengths and profitability is essential to understand competitive advantages that drive dividends and value.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.265 | 0.359 | -1.061 |
| Return on Assets | 0.012 | 0.016 | -0.142 |
| Margins: Net | 0.175 | 0.155 | -0.179 |
| EBIT Margin | 0.298 | 0.179 | -0.367 |
| EBITDA Margin | 0.339 | 0.279 | -0.154 |
| Gross Margin | 0.900 | 0.969 | 0.915 |
| Research & Development to Revenue | 0 | 0 | 0 |
The profitability metrics reveal areas for potential improvement, with strong returns bolstering the potential for reinvestment and sustained dividends.
📈 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 3 | |
| Dividend Growth | 1 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Rating: 25/40
🗣️ Rating
In conclusion, Apollo Global Management, Inc. demonstrates a commitment to shareholder returns through dividends. While current growth figures are negative, the overall stability and financial health suggest potential for improved future yields. Investors may consider APO for steady, albeit limited, income in their portfolios while acknowledging the company's strategic approach to balancing dividend payments with internal reinvestment needs.