Is Now A Good Time To Buy This 11.5% Yielding BDC?

This company's shares sell for a wide discount to NAV after the 2018 sell-off in high-yield. The company has a fairly diversified investment portfolio that consists largely of secured debt. It increased its exposure to variable-rate debt in the last several quarters. I don't expect a dividend cut over the short haul. An investment in the stock yields 11.5 percent.

Apollo Investment Corporation (AINV) is a promising "Buy" on the drop. The business development sells for an attractive discount to net asset value, and it covers its dividend with net investment income. Though the BDC's eleven percent dividend comes with certain risks, I believe the combination of high, recurring dividend income and a low P/NAV-ratio make Apollo Investment Corporation a "Buy" at today's price point. An investment in AINV comes with a dividend yield of 11.5 percent.

Source: Seeking Alpha

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