April 30, 2025 a 02:46 am
KKR: Dividend Analysis - KKR & Co. Inc.
KKR & Co. Inc. has a rich history of dividend payouts, demonstrating commitment to shareholder returns, though the yield may seem modest. With a robust balance sheet and strategic growth, it holds potential for long-term value creation. Current financial indicators suggest a solid foundation for sustained income generation, albeit under constant market scrutiny.
📊 Overview
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend yield | 0.50 % |
| Current dividend per share | 0.69 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
📈 Dividend History
The dividend history of KKR illustrates the company's resilience and ongoing commitment to returning capital to shareholders. It is a vital indicator of both stability and corporate management's confidence in future earnings.
| Year | Dividend per Share |
|---|---|
| 2025 | 0.175 USD |
| 2024 | 0.690 USD |
| 2023 | 0.650 USD |
| 2022 | 0.610 USD |
| 2021 | 0.570 USD |
📈 Dividend Growth
Dividend growth reflects the company's ability to enhance shareholder value through increasing payouts. It is crucial for income investors as a proxy for future performance.
| Time | Growth |
|---|---|
| 3 years | 6.58 % |
| 5 years | 6.65 % |
The average dividend growth is 6.65 % over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
A thoughtful analysis of the payout ratio elucidates a company's capacity to sustain dividends. Lower ratios typically signify greater potential for future increases.
| Key figure | Ratio |
|---|---|
| EPS-based | 19.92 % |
| Free cash flow-based | 9.42 % |
At 19.92 % (EPS) and 9.42 % (FCF), the current payout ratios suggest a conservative approach, indicating room for potential dividend increases.
🗣️ Cashflow & Capital Efficiency
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.96 % | -2.23 % | -15.42 % |
| Earnings Yield | 2.34 % | 5.19 % | -1.50 % |
| CAPEX to Operating Cash Flow | 2.13 % | -7.26 % | -1.61 % |
| Stock-based Compensation to Revenue | 3.45 % | 4.31 % | 13.12 % |
The cash flow and capital efficiency data reflect fluctuating cash generation capacity. Despite challenges, the healthier 2024 metrics suggest a recovery pending strategic initiatives.
🗣️ Balance Sheet & Leverage Analysis
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 214.85 % | 216.06 % | 248.61 % |
| Debt-to-Assets | 14.11 % | 15.57 % | 15.91 % |
| Debt-to-Capital | 68.24 % | 68.36 % | 71.31 % |
| Net Debt to EBITDA | 3.92x | 3.06x | 23.22x |
| Current Ratio | 4.12x | 1.51x | 1.56x |
| Quick Ratio | 0.00x | 1.51x | -0.02x |
| Financial Leverage | 15.23x | 13.88x | 15.63x |
Despite the high leverage ratios, the maintained liquidity, reflected in the current ratios, suggests a balanced approach to managing debt obligations amidst market fluctuations.
📝 Fundamental Strength & Profitability
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.01 % | 16.33 % | -2.94 % |
| Return on Assets | 0.85 % | 1.18 % | -0.19 % |
| Net Margin | 14.21 % | 26.06 % | -9.37 % |
| EBIT Margin | 42.36 % | 66.33 % | 24.18 % |
| EBITDA Margin | 42.36 % | 66.33 % | 24.18 % |
| Gross Margin | 79.99 % | 33.94 % | 36.06 % |
The disparities in margins and returns showcase KKR's volatile but ostensibly improving profitability landscape, underpinned by strategic refinements and market adjustments.
📉 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
✅ Rating
Overall, KKR & Co. Inc. presents as a potentially lucrative dividend stock with a balance of growth and stability attributes. While the dividend yield remains conservative, the payout ratios highlight scope for enhancement. Recommended for long-term investment, particularly attractive for investors valuing strategic and consistent dividend policy with appreciable growth prospects.