Apollo Global Seeks Sovereigns

The Financial Services sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurances, Savings, and all such financial concerns.

Today I'm reviewing an alternative-asset management company. It's a large-cap stock, Apollo Global Asset Management LLC It's trading ticker symbol is APO

Apollo Global Management LLC invests and manages funds on behalf of prominent pension, endowment and sovereign wealth funds as well as other institutional and individual investors.

The firm makes investments in North America,  Western Europe, and Asia. It uses a combination of contrarian, value, and distressed strategies to make its investments.  It seeks to acquire minority positions in its portfolio companies in the range of $200 million and $1.5 billion. 

Apollo Global Management, LLC was founded in 1990 and is headquartered in New York City, with additional offices around the world.

Three key data points measure dividend equities or funds like Apollo Global Management, LLC: 

(1) Price

(2) Dividends

(3) Returns

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

Those first three primary keys, however, best tell whether a company has made, is making, and will make money. 

APO Price

Apollo Global's price at yesterday's market close was $32.37 per share. A year ago its price was $23.18. That is a gain of $9.19 per share in the past year.  

Assuming Apollo Global's price gains at the same pace this year, its price would grow from $32.37 to $41.56 by March 2019.

APO Dividends

Apollo Global's most recent quarterly dividend was $0.66 declared February 2 and paid February 28.

The Apollo Global annual dividend for 2018 is estimated at $2.06 to be paid in four variable quarterly installments in May, August, November, and February.

The yield from that $2.06 annual dividend is 6.4% at yesterday's $6.40 share price. 

Gains For APO?

Adding the $2.06 annual dividend to the $9.19 estimated price gain makes an $11.25 projected gross annual gain, to absorb any cost to trade those shares.  

Say $1,000.00 invested at yesterday's $32.37 price. That trade bought 31 shares. 

A $10 broker fee paid as $5 at purchase and $5 at sale equals about $0.32 cost per share

Subtracting that $0.32 brokerage cost from the estimated $11.25 gross gain leaves a net gain to next year of $10.93

X 31 shares 

= $338.33

or a 17.5% net gain on a $1,003.47 investment.

Therefore, Apollo Global Management, LLC (whose ticker symbol is APO), now shows a possible 33.7% net gain including a 6.4% dividend yield. 

Fifteen analysts cover this stock. Seven rate it as "buy". Five rate it "outperform". Three say "hold". All concede it is a stock to outperform and tag the price to rise to $40.80 in the next year. That is $0.76 less than the year over year target estimate of $41.56 I used.

These forward-looking numbers are conjecture based on past year performance. The 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 Asset Management, LLC is worth your time and money.

Disclaimer: For more information and to get a two-week free sample of my stock portfolios just click on this link. Click ...

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