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.

/>/>
 
 
 

<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

Facebook M is a Hybrid Personal Digital Assistant inside Messenger
Facebook M is a Hybrid Personal Digital Assistant inside Messenger
M relies on artificial intelligence and human assistance.
 
 
iPhone Users get 30 Day Free Samsung Galaxy Trial
iPhone Users get 30 Day Free Samsung Galaxy Trial
Samsung tries everything to get new customers. Now iPhone user can test a new Galaxy smartphone 30 days for free.
 
 
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft released 3rd Windows 10 Updates with KB 3081438
Microsoft's release schedule for Windows 10 updates is fast paced. The company released three updates within 2 weeks.
 
 
New Skinny Jeans for Women Charges and Hides iPhone
New Skinny Jeans for Women Charges and Hides iPhone
Joe's Jeans offers a Jeans for female mobile warriors. Meet the Joe's Jeans #Hello.