1 Indicator Showing Why These Beaten-Down Dividend Stocks Are Great Buys
Shares of leading alternative asset managers Blackstone (NYSE: BX), Brookfield (NYSE: BN)(NYSE: BAM), and KKR (NYSE: KKR) have gotten hammered over the past year. Since the bull market ended early last year, they've lost more than 20% of their value. A big factor weighing on their shares has been the potential impact of rising interest rates on institutional investors' appetite for the alternative investments they manage.
However, according to a recent survey by State Street, institutions remain hungry for alternatives. It found that 68% of respondents plan to keep their allocation to private market investments in line with their current targets. This outlook bodes well for the leading alternative asset managers as it suggests money will continue to flow into their funds. That means they will continue to generate lots of management fees to support their dividends.
Institutional investors -- pension funds, sovereign wealth funds, and insurance companies -- have flocked to alternatives to the stock and bond markets, such as private equity, credit, real estate, and infrastructure funds. Private market assets have historically delivered attractive total returns with less volatility than public markets.
Source Fool.com
