Should Investors Consider This 11.5% Yield?

In an era where most companies pay less than five percent, an ultra-high dividend yield often turns out to be a by-product of plunging share price. And for the most part, that was the case for this company. The stock slipped 11.3% over the past 12 months, pushing its yield past the double-digit mark. But after the release of the company’s latest financial results, its stock seems to be making a comeback. The stock surged four percent in the trading session following its third-quarter earnings report. And yet the stock still yields a remarkable 11.5%. Should investors consider this high-yield stock? Let’s take a look...

Apollo Investment Corp. (NASDAQ:AINV) is a specialty finance company headquartered in New York City. Structured as a business development company (BDC), Apollo provides debt and equity financing to private middle-market companies. Right now, Apollo’s core business is lending, as first- and second-lien loans account for 84% of its total portfolio. By earning an interest income stream from its portfolio, Apollo can establish a dividend policy to return cash to investors on a regular basis. With a quarterly dividend rate of $0.15 per share, AINV stock offers a generous annual yield of 11.5%.

Source: Income Investors

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