Dividend-News

Daily dividend news for investors in dividend stocks


Apollo Investment: 12% Yield Supported By Improving Portfolio Quality

Published Tue, 26 Mar 2019 15:54:58 -0400 on Seeking Alpha

Current BDC Yields
As mentioned in previous articles, Business Development Companies ("BDCs") are priced based on expected returns to shareholders including regular and special dividends as well as realized capital gains and growing book values. The average BDC yield after taking into account special dividends is around 10% annually. BDCs with higher yields usually implies higher risk and/or expected credit issues driving dividend cuts and lower book values. Also mentioned in previous articles, I am expecting a handful of BDCs to announce dividend reductions in 2019 including MCC and TCRD as predicted in "Dividend Cuts For The BDC Sector" and dividend increases including TCPC discussed in "Dividend Increases For The BDC Sector: Part 5".
This article discusses the recently reported results for Apollo Investment (OTC:AINV) that is currently yielding around 12%:

Source: SEC Filings and www.bdcbuzz.com

AINV Dividend Coverage Update
For the quarter ended December 31, 2018, AINV reported between my base and best case projections, covering its dividend with slower-than-expected portfolio growth due to $291 million of sales repayments offset by only $305 million of new investments that were 98% into its “core strategies” that now account for 80% of the portfolio (previously 78%). The company repurchased 1.5 million shares at 24% discount to the previously reported net asset value ("NAV") resulting in an increased debt-to-equity ratio of 0.76 as... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MONROE CAPITAL 10.22   17.9 0.57 1.40 13.44
THL CREDIT 6.63   0.0 -0.86 0.84 12.92
PENNANTPARK INVESTMENT 6.39   22.0 0.29 0.72 11.41
PROSPECT CAPITAL 6.53   10.9 0.60 0.72 11.20
KOHLBERG CAPITAL 3.75   0.0 -0.25 0.40 11.05
TCP CAPITAL 13.32   28.3 0.47 1.44 10.84
WHITEHORSE FINANCE 12.77   6.6 1.94 1.42 10.79
FIDUS INVESTMENT 14.69   8.7 1.69 1.56 10.69
STELLUS CAPITAL INVESTMENT 12.80   7.8 1.65 1.36 10.40
HERCULES TECH GROWTH CAP 12.66   9.6 1.32 1.28 9.99
HORIZON TECHNOLOGY FINANCE 11.94   9.6 1.25 1.20 9.92
PENNANTPARK FLOATING RATE CAPITAL 11.50   29.5 0.39 1.14 9.86
MEDLEY CAPITAL 2.55   0.0 -1.62 0.25 9.43
GOLDMAN SACHS BDC 19.33   21.5 0.90 1.80 9.09
GLADSTONE CAPITAL 9.40   62.7 0.15 0.84 9.02
SARATOGA INVESTMENT 23.85   8.0 2.97 2.20 9.02
NEWTEK BUSINESS SERVICES 21.33   0.0 0.00 1.84 8.89
ARES CAPITAL 18.64   10.2 1.82 1.60 8.73
SOLAR SENIOR CAPITAL 17.30   18.8 0.92 1.41 8.29
SOLAR CAPITAL 20.44   12.1 1.69 1.64 8.13
ALCENTRA CAPITAL 8.84   14.0 0.63 0.72 8.00
GLADSTONE INVESTMENT 11.52   6.9 1.67 0.82 7.17
GOLUB CAPITAL BDC 18.34   15.5 1.18 1.28 6.97
MAIN STREET CAPITAL 42.47   16.5 2.57 2.46 5.80

MONROE CAPITAL - MRCC
MONROE CAPITAL - MRCC  


Older articles featuring Monroe Capital (MRCC):
Still Waiting For A Dividend Increase From Oaktree
Assessing Risk: Retirement Portfolio Using BDCs Yielding 10%+
Building A Retirement Portfolio With BDCs Currently Yielding 10.6%
Prospect Capital: Upcoming Credit Issues And 11%+ Yielding Replacement
Yield-Starved Investors Still Accumulating BDCs Paying More Than 10% Annually
10% Yielding New Mountain Finance Receives Fitch Rating
Strong Buy With 12% Yield With 30%+ Return Potential: TCG BDC
My Dividend Growth Portfolio Off To A Good Start In 2019
Dividend Cuts For The High-Yield BDC Sector
Dividend Increases For The High-Yield BDC Sector, Part 4: Main Street Capital

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