AINV Breaks Above 10% Yield Territory

Apr 28 2014, 3:19pm CDT | by

Looking at the universe of stocks we cover at Dividend Channel, in trading on Monday, shares of Apollo Investment Corporation (NASD: AINV) were yielding above the 10% mark based on its quarterly dividend (annualized to $0.80), with the stock changing hands as low as $7.90 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 10% would appear considerably attractive if that yield is sustainable. Apollo Investment Corporation (NASD: AINV) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Apollo Investment Corporation, looking at the history chart for AINV below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 10% annual yield.

Click here to find out which 9 other dividend stocks just recently went on sale, at DividendChannel.com »


Special Offer: Add income and energy exposure to your portfolio with a 30 day free trial to Frank Bifulco’s Oil & Gas Income Portfolio

According to the ETF Finder at ETFChannel.com, AINV makes up 4.82% of the BDC Income ETF (AMEX: BIZD) which is trading lower by about 1.2% on the day Monday.

/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Global entrepreneurship summit boost for SMEs
Marrakech, Nov 22 (IANS) Nine agreements were signed between the Moroccan General Confederation of Enterprises (CGEM) and several small and medium enterprises (SMEs) as well as between major Moroccan banks and start-ups at the 5th Global Entrepreneurship Summit (GES 2014) held in Morocco.
 
 
NASA's flying saucer among 'Best of What's New'
Washington, Nov 22 (IANS) NASA's Low-Density Supersonic Decelerator (LDSD), a spacecraft that aims to facilitate the safe landing of future Mars missions, has earned a place in the the Popular Science magazine's "Best Of What's New" list.
 
 
Indian helping to light up Gambia (Diaspora Feature)
Banjul (Gambia), Nov 22 (IANS) Like many Indians who are proving to be philanthropists around Africa, Ram Mohan has set up a social business called Comafrique Intelizon Initiative and has embarked on the replacement of candles in villages in the Gambia with solar lights from India.
 
 
Leopards in human areas not conflict animals: Study
New Delhi, Nov 22 (IANS) Leopards in human areas are not always "stray" or "conflict" animals but residents with strategies to thrive in human dominated areas, says the first GPS-based study of leopards in India.
 
 
 

Latest from the Network

Amazon Black Friday: Samsung UN32H5203 Black Friday TV Deal is Best Seller on Amazon
Amazon begun to take pre-orders on 15 Samsung TV Black Friday 2014 TV deals. All deals are the at the lowest advertised prices in Black Friday ads. All Samsung Black Friday deals seem to be controlled by Samsung. Amazon...
Read more on Black Friday Countdown
 
Evangeline Lilly appreciated new Hobbit role
Evangeline Lilly found it ''liberating'' playing a new character in 'The Hobbit' movies. The former 'Lost' actress joined the cast as Tauriel in second movie 'The Hobbit: The Desolation of Smaug' and though she was...
Read more on Movie Balla
 
Indian smuggler shot by Nepal police
Kathmandu, Nov 22 (IANS) Nepal Police shot dead an Indian national along the Nepal-India border while he was smuggling weapons from India. The incident took place Saturday afternoon in Bishnupura village of Rupandhei...
Read more on Politics Balla
 
Battle with IS militants continues in Iraq
Baghdad, Nov 22 (IANS) Iraqi security forces launched a major offensive against Islamic State (IS) militants in the western province of Anbar Saturday, even as fighting continued in the province of Salahudin, a...
Read more on Politics Balla
 
Global entrepreneurship summit boost for SMEs
Marrakech, Nov 22 (IANS) Nine agreements were signed between the Moroccan General Confederation of Enterprises (CGEM) and several small and medium enterprises (SMEs) as well as between major Moroccan banks and start-...
Read more on Business Balla
 
Five killed in Indonesia landslides
Jakarta, Nov 22 (IANS) At least five people were killed and many houses damaged in landslides in Indonesia's North Sumatra Saturday, an official said here. Heavy downpour caused the landslides in Sibio Bio village of...
Read more on Politics Balla
 
Al-Shabaab claims responsibility for Kenya bus attack
Nairobi, Nov 22 (IANS) Somalia-based militant group Al-Shabaab Saturday claimed responsibility for the killing of 28 bus passengers in Kenya. Al-Shabaab spokesman Sheikh Ali Mohamud Rage said the dawn attack on the...
Read more on Politics Balla
 
Force India cars to start 13th, 14th at Abu Dhabi
Abu Dhabi, Nov 22 (IANS) Force India drivers Sergio Perez and Nico Hulkenberg will start 13th and 14th at the season ending Formula 1 Abu Dhabi Grand Prix to be held at the Yas Marina Circuit here Sunday. In Saturday'...
Read more on Sport Balla
 
Chandhok finishes 6th in Putrajaya ePrix
Putrajaya (Malaysia), Nov 22 (IANS) India's Karun Chandhok, driving for Mahindra Racing, eventually finished sixth to bring home eight points despite racing for a podium spot for most of the Formula E Putrajaya ePrix...
Read more on Sport Balla
 
Australia replace Sandhu with Conway in team facing India
Melbourne, Nov 22 (IANS) New South Wales (NSW) fast bowler Harry Conway replaced bowler Gurinder Sandhu in the CA XI squad in the first tour match against India as the Indian-origin player was selected for the NSW...
Read more on Sport Balla