Apollo Investment Corp-Big Dividends
DIVIDENDS BUILD WEALTH
For all of you dividend/income investors out there, Apollo Investment Corp. (AINV) should be a serious consideration. It is paying 9.4% and has the potential for significant stock appreciation. Apollo is a business development company. To keep it simple, they lend and/or invest money to small and mid-sized businesses. Over the past 12 months, if you were to include their dividend of 9.4%, the return on investment is approximately 35%.
One Year Chart vs Nasdaq
Here are some things to think about:
1. The dividend is currently 9.4%.
1a. This second reason is just as important as the first. They have a dividend growth rate (annualized) of about 20% since issuing their first one in 2004. Back then they paid a dividend of .045, today it is 20 cents/share. Between their first dividend payment and today, there have been 35 dividend payments.
2. Company’s price-to-book is 1.03
3. Its P/E is also very low, about 10.
Tomorrow, I will give you some more compelling reasons to take a look at AINV.