Apollo Global Manages Alternative Assets

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the financial services sector. 

The financial sector includes nineteen industries all related to managing money: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.

Today I'm reviewing a Large-CapAsset Management Company. The company's name is Apollo Global Management, LLC. Its trading ticker symbol is APO.  

Apollo Global Management, LLC is an alternative-asset management company. It invests and manages funds on behalf of prominent pension, endowment and sovereign wealth funds as well as other institutional and individual investors.

It seeks to invest in companies based in across North America with a focus on the United States, and Europe. The firm also makes investments outside North America, primarily in Western Europe and Asia. 

It employs a combination of contrarian, value, and distressed strategies to make its investments. The firm seeks to make investments in the range of $10 million and $1.5 billion. The firm conducts an in-house research to create its investment portfolio. It seeks to acquire minority and majority positions in its portfolio companies. 

Apollo Global Management, LLC was founded in 1990 and is headquartered in New York City, with additional offices in New York City; Bethesda, Maryland; Chicago, Illinois; Los Angeles, California; Purchase, New York; Houston, Texas; London, United Kingdom; Frankfurt, Germany; Central, Hong Kong; Singapore; and Luxembourg.

I use three key data points gauge the value of any dividend equity or fund like Apollo Global Management, LLC. (APO): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

APO Price

Apollo's price was $31.40 per share at yesterday's market close. A year ago its price was $27.56 for a gain of $3.84 per share in the past year.  

Assuming Apollo's price will continue to trade in the range of $25.00 to $40.00 next year, its price could grow another $3.84 from $31.40 to $35.24 by late-May, 2019. 

APO Dividends

Apollo's most recently declared variable quarterly dividend was $0.38 per share declared in early May, and payable May 31st. That $0.38 Q dividend combines with up to a $0.66 Q dividend equates to an estimated annual payout of $2.08 for 2018 which yields 6.6% at yesterday's $31.40 closing stock price.

Gains For APO?

The $3.84 estimated year over year price gain plus an anticipated dividend of$2.08 makes a projected gross annual gain of $5.92 per share, which will be reduced by the costs to trade those shares.  

$1,000.00 invested today at the $31.40 price buys 32 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts$0.31 per share.

Taking that $0.31 brokerage cost out of the estimated $5.92 gross gain per share leaves a net gain of $5.61 X 32 shares = $179.52 or an 18% potential net gain on a $1,004.80 investment.

Therefore, Apollo Global Management, LLC. (whose ticker symbol is APO), now shows a possible 18% net gain including a 6.6% dividend yield. 

Fifteen analysts cover this stock:

Seven say "buy."

Five say APO will "outperform" the market. 

Three say "hold."

The median analyst recommendation is 1.7 or Outperform and their price target is almost $4 above the estimated year over year number I just calculated.

Y Charts also rates APO "neutral" for an overall "Y" rating. Y Charts also shows "Good" for a Value score of 9 out of ten points. And YCharts ranks APO "strong" with 7 out of 10possible Fundamental points. Y Charts Historic Valuation score is 13.9% overvalued, based on a $25.57 historic value multiple.

You could look at all those numbers like this: Apollo Global Management, LLC (APO) has made money, is making money, and could net an 18% net gain next year including a 6.6% dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Apollo Global Management, LLC (APO) is worth your time and money.

Disclosure: Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst mean target price by Thomson/First Call in Yahoo ...

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