Ares Management: Dividend Yield Spikes On 20% Hike And AI Ghosts, AUM Hits Record

Pacifica Yield13.84K FollowersFollow5ShareSavePlay(7min)CommentsSummaryAres Management is rated Buy as market panic creates a rare yield and growth opportunity.ARES offers a 5.3% dividend yield, recently hiked by 20%, with a 22.87% 5-year dividend CAGR and investment-grade rating at "A-" from Fitch.Fears over AI and private credit have driven ARES to a historically high yield, despite record AUM and fee-related earnings growth. AUM reached $623 billion.Mandatory Convertible Preferreds (ARES.PR.B) yield 9.93% and offer an alternative entry point with mandatory conversion in 2027. mbbirdy/E+ via Getty Images Ares Management (ARES) has followed its asset management peers lower in the last few months as the market gets gripped by raw panic over the impact of AI on software-linked credit and a wave of redemption requests sweeping someThis article was written byPacifica Yield13.84K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ARES either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.