How Publicly Traded Private Equity Giants Can Offer Both Growth and Income in Retirement
When most people think of dividend-paying stocks, they picture utility companies or consumer staples—not private equity firms or asset managers. But in recent years, some of the most consistent and rewarding dividend stocks have come from the world of alternative asset management.
These companies don’t just manage money. They build infrastructure, finance real estate, back startups, and support the growth of entire industries. And they get paid handsomely to do so—often sharing those profits with investors through generous, reliable dividends.
In this post, we’ll spotlight four of the top publicly traded asset managers:
Brookfield Asset Management (BAM),
KKR & Co. (KKR),
Ares Management (ARES), and
Apollo Global Management (APO).
These are not just household names in the financial world—they’re also smart income investments that can provide retirees and long-term investors with a blend of income, growth, and diversification.
Why Asset Managers Can Be Great Dividend Stocks
What makes asset managers so appealing for income-focused investors?
- Fee-Based Revenue: These firms earn steady fees from managing billions—sometimes trillions—of dollars for institutional clients, retirement funds, and governments.
- Performance Incentives: When the investments they manage do well, they earn additional “carried interest” or incentive fees. That means their income can grow in strong markets.
- Asset-Light Models: Most have low capital needs and generate high cash flow, allowing them to return profits to shareholders through dividends and share buybacks.
- Long-Term Growth: They benefit from powerful trends like aging populations, the global search for yield, and the rising importance of private markets.
Let’s look at each firm in detail and why they may deserve a spot in your income portfolio.
1. Brookfield Asset Management (BAM): Infrastructure Meets Dividends
Brookfield Asset Management is a global powerhouse with over $900 billion in assets under management. What makes BAM stand out is its focus on real, physical assets: infrastructure, renewables, real estate, and private equity.
Why Investors Like BAM:
- Steady, Inflation-Protected Income: Much of Brookfield’s revenue comes from long-term, inflation-linked contracts in utilities, toll roads, and renewable power.
- Fee-Based Business Model: Brookfield earns recurring management fees and performance bonuses, which are largely independent of stock market swings.
- Reliable Dividend: BAM has paid—and grown—its dividend consistently. The company targets double-digit annual growth in distributable earnings and has a low payout ratio, allowing room for increases.
- Alignment with Retirement Trends: Global pension funds and institutions are allocating more money to infrastructure and private markets—right in Brookfield’s wheelhouse.
📈 Dividend Yield (as of 2025): ~3%
🏆 Dividend Growth: 10% average annual increase projected through 2028
Brookfield combines dependable cash flow with long-term secular tailwinds. It’s a cornerstone holding for many conservative growth and income investors.
2. KKR & Co. (KKR): Private Equity with Global Reach
KKR was one of the pioneers of private equity and leveraged buyouts. Today, it manages more than $500 billion in a wide range of strategies including infrastructure, credit, real estate, and growth equity.
What Sets KKR Apart:
- Massive Scale and Reach: KKR invests across the globe and across sectors, giving it unmatched diversification and access to opportunity.
- Aligned Interests: KKR’s model includes substantial ownership by its executives, which strongly aligns the firm with shareholders.
- Growing Distribution: In recent years, KKR has made returning capital to shareholders a priority through dividends and share repurchases.
- Strong Performance: KKR has outperformed the market over the long run—its investments often deliver double-digit returns over time.
📈 Dividend Yield (as of 2025): ~1.3% but growing steadily
📊 Long-term Capital Appreciation: Historically above 15% annually in total returns
KKR is ideal for investors who want growth with a rising income component. It’s also an excellent inflation hedge due to its exposure to real assets and floating-rate credit strategies.
3. Ares Management (ARES): The Income Investor’s Favorite
If you’re looking for a strong income-producing asset manager, look no further than Ares. This Los Angeles-based firm focuses on private credit, direct lending, real estate, and infrastructure. It has built a reputation as one of the most conservative, reliable dividend payers in the asset management space.
Why ARES Belongs in a Retirement Portfolio:
- Focus on Private Credit: Ares specializes in senior secured loans and other fixed-income strategies—exactly the type of investment retirees need for stability.
- Generous Dividend Payout: Ares maintains a relatively high payout ratio and often pays special dividends in addition to regular quarterly ones.
- Defensive Strength: Even during economic slowdowns, private credit performs well due to built-in protections and floating-rate features.
- Reliable Growth: With institutional investors increasing their allocation to alternatives, Ares is seeing steady asset growth and earnings momentum.
📈 Dividend Yield (as of 2025): ~3.5–4%
💵 Track Record: Paid rising or stable dividends every year since going public
ARES is a favorite among conservative income investors because of its balance between yield and risk. It’s often considered a “bond alternative” with equity upside.
4. Apollo Global Management (APO): High Yield Meets High Conviction
Apollo is one of the largest alternative asset managers in the world, with over $600 billion in assets. It’s known for its aggressive, high-return investment strategies in credit, insurance, and private equity.
Why APO Deserves Attention:
- Cash Flow Machine: Apollo is highly profitable and generates billions in free cash flow annually, which fuels its dividend and reinvestment strategy.
- Integrated Insurance Platform: Apollo’s Athene subsidiary provides permanent capital and stable liabilities—a powerful source of steady earnings.
- Attractive Payouts: Apollo’s dividend yield is often among the highest in the sector, and the firm is committed to shareholder returns through dividends and buybacks.
- Diversification and Growth: APO benefits from insurance inflows, alternative credit strategies, and corporate restructurings—making it a well-rounded performer in all market cycles.
📈 Dividend Yield (as of 2025): ~2.5–3.5%
🔁 Payout Growth: Linked to recurring earnings, with room for future increases
Apollo appeals to income investors who also want exposure to higher-growth, higher-yielding strategies.
A Quick Summary
Here’s a snapshot of what makes these four asset managers so appealing:
- ✅ Brookfield (BAM): Infrastructure-focused, dividend grower, inflation protection
- ✅ KKR: Global diversification, strong total returns, rising dividend
- ✅ Ares (ARES): Credit-heavy, steady income, excellent payout reliability
- ✅ Apollo (APO): High cash flow, generous dividends, exposure to credit and insurance
📊 10-Year Total Returns (Including Dividends)
Here’s how these asset managers have performed over the past decade when accounting for share price appreciation plusreinvested dividends:
- Brookfield Corporation (BN):
– 10‑year total return: ≈ 457–467%
– Equivalent to a compound annual growth rate (CAGR) of ~19% . - Apollo Global Management (APO):
– 10‑year total return: ≈ 859–877%
– CAGR around 25.9% - Ares Management (ARES):
– 10‑year total return: ≈ 1,195%
– CAGR of about 28.4% - KKR & Co. (KKR):
– 10‑year total return: ≈ 562–557%
– CAGR roughly 20.8–20.9% .
Why Retirees Should Consider These Stocks
If you’re a retiree or near retirement, these companies offer several unique benefits:
- Consistent, Predictable Income: Regular dividends, often quarterly, make planning your retirement budget easier.
- Diversification from Traditional Stocks and Bonds: Exposure to private markets, infrastructure, and credit can reduce correlation to the broader stock market.
- Long-Term Growth Potential: These are not sleepy income stocks. They continue to grow revenues, earnings, and dividends—something every retiree should want.
- Strong Institutional Ownership: You’ll be investing alongside major pension funds, endowments, and sovereign wealth funds. These are companies backed by deep pockets and high-level trust.
Final Thoughts: Income with Upside
When you think about safe income for retirement, asset managers may not be the first place your mind goes—but they should be. These companies earn money whether the stock market is up or down, and they often benefit when volatility creates opportunity.
By owning a slice of firms like Brookfield, KKR, Ares, and Apollo, you gain access to alternative investments, high-quality dividends, and smart management—all in one package.
Learn More …
This post is adapted from my book:
The 15% Solution: Invest With the Billionaires in Private Equity and Asset Managers
Available now on Amazon.com in paperback and ebook formats.
Inside the book, you’ll get a deep dive into how to evaluate these companies, how to build a diversified portfolio around them, and why these often-overlooked dividend stocks might be your best shot at long-term financial freedom.
Disclaimer: This post is for informational and educational purposes only. It is not investment advice or a recommendation to buy or sell any security. Please consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.