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Insights on KKR’s Dividend Distribution

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Expected distribution in 2017

After reporting dividends of $0.64 per share in 2016, KKR & Company (KKR) is expected to report dividends of $0.68 in 2017, reflecting a rise of 6.3%.

In May 2017, KKR declared a dividend of $0.17 per share, which it paid on May 23, 2017. This dividend reflected a rise of 6.3% compared to the dividend it declared in February 2017. On April 2017, KKR spent $459 million on the repurchase of 31.7 million common units. This expenditure was in line with the company’s repurchase goal of $750 million, which it authorized in October 2015.

On the other hand, Carlyle Group (CG) declared a dividend of $0.10 per share in April 2017. The company paid this dividend in May 2017. The dividend reflected a fall of 37.5% from the dividend Carlyle declared in February 2017.

On March 31, 2017, KKR’s after-tax distributable earnings amounted to $346 million, compared to its earnings of $168 million on March 31, 2016.

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Return on equity

KKR & Company has delivered a return on equity (or ROE) of 15.1% on a trailing-12-month basis. Other alternative asset managers (XLF) have delivered higher trailing-12-month ROEs than KKR. KKR’s peers have reported the following ROEs:

  • Apollo Global Management (APO): 79.2%
  • Blackstone (BX): 23.5%
  • Carlyle Group (CG): 18.8%
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