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Why It Might Not Make Sense To Buy Apollo Global Management, Inc. (NYSE:APO) For Its Upcoming Dividend

Simply Wall St
·3 min read

Apollo Global Management, Inc. (NYSE:APO) is about to trade ex-dividend in the next 4 days. You will need to purchase shares before the 19th of November to receive the dividend, which will be paid on the 30th of November.

Apollo Global Management's next dividend payment will be US$0.51 per share, on the back of last year when the company paid a total of US$2.35 to shareholders. Based on the last year's worth of payments, Apollo Global Management stock has a trailing yield of around 5.3% on the current share price of $44.24. If you buy this business for its dividend, you should have an idea of whether Apollo Global Management's dividend is reliable and sustainable. So we need to check whether the dividend payments are covered, and if earnings are growing.

View our latest analysis for Apollo Global Management

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Apollo Global Management lost money last year, so the fact that it's paying a dividend is certainly disconcerting. There might be a good reason for this, but we'd want to look into it further before getting comfortable.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. Apollo Global Management reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Since the start of our data, 10 years ago, Apollo Global Management has lifted its dividend by approximately 24% a year on average.

We update our analysis on Apollo Global Management every 24 hours, so you can always get the latest insights on its financial health, here.

The Bottom Line

Has Apollo Global Management got what it takes to maintain its dividend payments? It's hard to get past the idea of Apollo Global Management paying a dividend despite reporting a loss over the past year - especially when the general trend in its earnings also looks to be negative. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now.

With that being said, if you're still considering Apollo Global Management as an investment, you'll find it beneficial to know what risks this stock is facing. For instance, we've identified 4 warning signs for Apollo Global Management (2 are potentially serious) you should be aware of.

A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.