5 Best Undervalued Dividend Stocks to Buy Now

4. Apollo Global Management, Inc. (NYSE: APO)

Number of Hedge Fund Holders: 30

PE Ratio: 7.3

Apollo Global Management, Inc. (NYSE: APO) is a New York-based alternative investment firm founded in 1990. It is ranked fourth on our list of 10 best undervalued dividend stocks to buy now. Apollo stock has returned more than 25% to investors over the past year. The company operates in North America, Asia, and Europe. The firm primarily manages client-focused portfolios for endowment and sovereign wealth funds, as well as other institutional and individual investors. 

On May 20, Apollo Global Management, Inc. (NYSE: APO) announced that Josh Harris, a co-founder at the firm, would be stepping down from his operational role at the firm by the end of this year to focus on building his own asset class investment business. 

At the end of the fourth quarter of 2020, 30 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Apollo Global Management, Inc. (NYSE: APO), up from 28 in the preceding quarter worth $1.8 billion.

In its Q3 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Apollo Global Management, Inc. (NYSE: APO) was one of them. Here is what the fund said:

“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.”