KKR Just Increased Its Dividend 191.67% Over Prior Quarter

Feb.15.13 | About: KKR (KKR)

As some of you already following me know, I enjoy dividends. I like consistent dividends, special one-time big dividends, and growing dividends. With that said, you may not have heard that KKR & Co. L.P. (NYSE:KKR) just increased its dividend 191.67% over prior quarter.

This caught my eye, so I decided to take a look at where it is currently trading. KKR & Co. closed at $17.83 per share on February 14, 2012, up from a December 5, 2012 low of $13.58 per share.

KKR & Co. has paid a dividend every quarter since 2010. This dividend increase to 70 cents per share for Q1 is almost equal to the payout for the entire year of 2011 of 71 cents. And close to the entire payout for 2012 of 84 cents.

It looks like KKR & Co. is turning the corner to keep rewarding shareholders with good dividend payout. KKR & Co's net income over the last 3 years (see chart below) provides proof that it is starting to see income growth and reflect it in dividend distributions.

KKR & Co.'s Last Three Years Of Net Income

Quarter Ending... 2010 2011 2012
March 31st: $113.84M $159.56M $190.44M
June 30th: $29.91M $39.62M $146.26M
September 30th: $8.856M $-243.40M $127.41M
December 31st: $180.58M $46.14M $96.7M
Total: $331.18M $1.92M

$560.81M

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With this information, it may be time to put KKR & Co. on your dividend stocks watch list. The usual dividend pullback after the Q1 dividend is paid might be a great time to get a position in this stock.

Even if you would have bought today at $17.83 per share and they paid Q2-Q4 out the same at 70 cents per share you would still reap a 11.78% dividend yield in 2013. But being conservative, let's say they only pay 45 cents per share for the last three quarters of 2013, you would still get a dividend yield of 7.57%.

My thoughts are we will see a slight pull back after the Q1 dividend is paid, any additional discount you can get on the stock will only help your chances of a higher yield the rest of the year, especially since the future dividend payouts are not guaranteed.

KKR & Co. Dividend Information:

Year Declaration Date Ex-Dividend Date Record Date Payable Date Dividend $ Amount
2013 Feb 7, 2013 Feb 14, 2013 Feb 19, 2013 Mar 5, 2013 0.70
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.