In this article we discuss the 5 best dividend stocks according to billionaire Chase Coleman. If you want to read our detailed analysis of Coleman’s history and hedge fund performance, go directly to the Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman.
5. Apollo Global Management, Inc. (NYSE: APO)
Dividend Yield: 3.67%
No. of hedge Fund Holders: 30
Apollo Global Management, Inc. (NYSE: APO) is an investment firm that focuses on alternative types of investments. This focus is its ticket into Chase Coleman’s list of best tech and dividend stocks. The company recently announced plans to acquire Verizon Communications Inc. (NYSE: VZ) for $5 billion. The acquisition will include Yahoo and AOL.
Verizon will maintain 10% ownership in the media business which will operate as Yahoo after the deal is finalized. Verizon bought out AOL in 2015 for $4.4 billion Yahoo for $4.5 billion in 2017.
Apollo Global Management, Inc. (NYSE: APO) portfolio ballooned to $461.1 billion in Q1 as its private equity assets continued to gain value. The company’s total revenue in Q1 grew to $2.29 billion from $1.30 billion revenue in the previous quarter. It also performed significantly better than the $1.47 billion Q1 2020 revenue. Management fees in Q1 2021 amounted to $457.2 million, a notable gain from the $446.9 million earned from management fees in the previous quarter.
“Blackstone & Apollo: Our alternative asset managers BX and APO were top detractors for the quarter as their results were affected by the COVID shutdowns, which have delayed the selling of assets and the realization of performance fees. Both companies (as well as our third alternative asset manager KKR) continue to generate consistently strong fee-related earnings (BX’s and APO’s fee-related earnings increased 28% and 9%, respectively, in the second quarter) and grow their assets under management (AUM) at impressive rates (BX’s and APO’s fee-generating AUM increased 12% and 45%, respectively, year over year).
While both face a temporary slowdown in investment realizations and near-term mark-to-market headwinds from the current crisis, most of their capital is long-dated or even permanent, most of their fees, which are high-margin and recurring, are not sensitive to the market, and both have billions of dollars of capital available to invest ($156 billion and $47 billion at the end of 2Q for Blackstone and Apollo, respectively). We continue to view BX and APO as two of the better risk-reward holdings in our portfolio, offering substantially better-than-average growth and cash flow fundamentals, and world class management teams, as well as dividend yields of 2.8% and 4.2%, respectively.”