“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
— Warren Buffett
A long-term investment in Ares Management Corp (NYSE: ARES) illustrates how powerful compounding can be when share price appreciation and dividend reinvestment work together over a full market cycle. Using a 10-year holding period beginning on 06/24/2016, a hypothetical $10,000 investment in ARES grew to $136,163.65 as of 06/23/2026, assuming dividends were reinvested.
That result amounts to a total return of 1,261.32% and an average annual return of 29.83%. For investors studying long-duration equity returns, ARES stands out as an example of how an alternative asset manager can create substantial shareholder value when earnings growth, fee-related scale, and capital markets tailwinds align over time.
ARES 10-Year Return Details
| Start date: | 06/24/2016 |
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| End date: | 06/23/2026 | ||||
| Start price/share: | $13.44 | ||||
| End price/share: | $120.78 | ||||
| Starting shares: | 744.05 | ||||
| Ending shares: | 1,127.11 | ||||
| Dividends reinvested/share: | $24.25 | ||||
| Total return: | 1,261.32% | ||||
| Average annual return: | 29.83% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $136,163.65 | ||||
On price alone, ARES rose from $13.44 to $120.78 per share over the period. Reinvested dividends added meaningfully to the final outcome by increasing the share count from 744.05 to 1,127.11. That is a useful reminder that total return, not price return alone, is the more complete measure of long-term equity performance.
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
What Drove the ARES Total Return?
Ares Management operates in alternative asset management, with exposure across credit, private equity, real assets, and secondary strategies. Businesses of this type can benefit from several durable drivers: growth in assets under management, management fee expansion, performance-related earnings, and the market’s willingness to assign higher valuation multiples to scaled alternative managers with diversified platforms.
ARES also sits in a part of the financial sector that has gained structural importance over the past decade. Institutional demand for private credit and other alternative strategies has expanded as investors have sought yield, diversification, and differentiated sources of return beyond traditional public markets. For firms with established origination networks and fundraising capabilities, that shift can support both earnings growth and dividend capacity.
Dividend Reinvestment and Share Growth
Over the 10-year period shown above, Ares Management paid $24.25 per share in cumulative dividends. When those distributions are reinvested, they buy additional shares, which in turn generate their own future dividends. That compounding effect is visible in the increase from 744.05 starting shares to 1,127.11 ending shares.
The calculation assumes dividends were reinvested at the closing price on each ex-dividend date. For long holding periods, this assumption can materially change the ending value relative to a cash-only dividend approach, especially when the stock subsequently appreciates.
Current Yield and Yield on Cost
Based on the most recent annualized dividend rate of $5.40 per share, ARES has a current yield of approximately 4.47% using the $120.78 ending share price in this analysis.
Another useful lens is yield on cost, which compares the current annualized dividend with the original purchase price. Using the 2016 entry price of $13.44 per share, the current $5.40 annualized dividend implies a yield on cost of 33.26%.
- Total return: 1,261.32%
- Average annual return: 29.83%
- Cumulative dividends per share: $24.25
- Current yield: approximately 4.47%
- Yield on cost: 33.26%
Why Yield on Cost Matters, and Why It Has Limits
Yield on cost helps show how a growing dividend stream can transform the economics of a successful long-term investment. In this case, an investor who bought ARES in 2016 would now be collecting annualized dividend income equal to roughly one-third of the original purchase price.
At the same time, yield on cost should not be confused with the return available to a new buyer today. For new capital, the relevant starting point is the current yield and the company’s ability to sustain and grow distributions from here. Yield on cost is best viewed as a retrospective measure of compounding rather than a forward-looking valuation tool.
Bottom Line
The 10-year ARES return profile underscores three core points. First, strong long-term equity outcomes often come from a combination of business growth and disciplined capital return. Second, dividend reinvestment can materially amplify ending wealth over time. Third, total return analysis provides a more complete picture than share price appreciation alone.
For anyone evaluating Ares Management stock today, the historical result is notable not simply because the gain was large, but because it demonstrates how a scaled alternative asset manager can compound value across multiple channels: earnings, dividends, and reinvestment.
