June 22, 2026 a 03:30 pm
ARES: Dividend Analysis - Ares Management Corporation
Ares Management Corporation presents a strong dividend profile characterized by a sustained dividend history of 13 years. With a current dividend yield of 3.66% and a consistent growth trajectory, Ares demonstrates its commitment to rewarding shareholders. Despite a high payout ratio, the company's robust market cap of over $41 billion suggests financial resilience, making it an attractive option for income-oriented investors seeking steady returns amidst market fluctuations.
📊 Overview
Ares Management operates within the financial services sector, offering investment management expertise. The company maintains a current dividend per share of 8.08 USD, reflecting its strategic focus on shareholder returns. Ares boasts a 13-year dividend history without suspensions, indicative of its stable cash flow and robust market positioning.
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend yield | 3.66 % |
| Current dividend per share | 8.08 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
📉 Dividend History
The dividend history of Ares Management underscores its capacity to sustain and potentially increase dividend payments over time. This history is crucial as it signals to investors the company's ability to generate consistent profits and its commitment to distributing them back to shareholders.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 2.70 |
| 2025 | 4.48 |
| 2024 | 3.72 |
| 2023 | 3.08 |
| 2022 | 2.44 |
📈 Dividend Growth
Dividend growth rates provide insight into a company's future cash flow and shareholder return potential. Ares Management has maintained a positive growth trajectory, indicative of effective financial strategies and profit reinvestment.
| Time | Growth |
|---|---|
| 3 years | 22.45 % |
| 5 years | 22.87 % |
The average dividend growth is 22.87 % over 5 years. This shows moderate but steady dividend growth, which can attract long-term investors looking for reliable income streams.
💹 Payout Ratio
Payout ratios are vital in assessing the sustainability of a company's dividend policy. Ares Management exhibits a high EPS-based payout ratio of 290.73 % and a FCF-based payout ratio of 164.51 %. These figures suggest that the dividends could be at risk if cash flow pressures increase, although the high market cap offers some buffer.
| Key figure | Ratio |
|---|---|
| EPS-based | 290.73 % |
| Free cash flow-based | 164.51 % |
💰 Cashflow & Capital Efficiency
Cashflow and capital efficiency analyses reveal operational efficiency and financial health. Free Cash Flow Yield and Earnings Yield offer insight into the company's cash generation potential relative to its market value.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 9.09 % | 7.70 % | -1.37 % |
| Earnings Yield | 1.50 % | 1.32 % | 2.16 % |
| CAPEX to Operating Cash Flow | 2.21 % | 3.28 % | -28.80 % |
| Stock-based Compensation to Revenue | 11.45 % | 9.08 % | 7.05 % |
| Free Cash Flow / Operating Cash Flow Ratio | 97.79 % | 96.72 % | 128.80 % |
These cash flow figures imply strong underlying cash generation capability, although negative free cash flow yield in some years stresses the need for cautious investment planning.
💳 Balance Sheet & Leverage Analysis
Balance sheet and leverage ratios provide insight into liquidity, solvency, and capital structure, essential for assessing financial stability amidst varying economic conditions.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 3.49 | 3.71 | 8.32 |
| Debt-to-Assets | 0.51 | 0.53 | 0.64 |
| Debt-to-Capital | 0.78 | 0.79 | 0.89 |
| Net Debt to EBITDA | 5.26 | 4.32 | 5.88 |
| Current Ratio | - | - | 0.73 |
| Quick Ratio | 2.24 | 0.98 | 0.73 |
| Financial Leverage | 6.78 | 7.02 | 13.06 |
Ares' leverages indicate high reliance on debt which could pose risks during interest rate hikes, though the liquidity ratios reassure short-term solvency.
📈 Fundamental Strength & Profitability
These metrics highlight efficiency in resource use and operational performance, crucial for long-term value creation and competitive positioning.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 12.33 % | 13.08 % | 25.05 % |
| Return on Assets | 1.82 % | 1.86 % | 1.92 % |
| Margins: Net | 8.15 % | 11.94 % | 13.06 % |
| EBIT | 31.75 % | 58.01 % | 60.41 % |
| EBITDA | 35.49 % | 62.09 % | 66.79 % |
| Gross | 74.79 % | 55.42 % | 59.07 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
The robust profitability margins and returns denote efficient cost management and resource allocation, positioning Ares Management well in the competitive landscape.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
🗣️ Rating
Ares Management Corporation is rated favorably for income-seeking investors, with a consistent dividend payment track record and no recent cuts or suspensions. While caution is warranted due to its high payout ratios and leverage levels, its strong market position and historical dividend growth underscore its dividend attractiveness.
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