Apollo Investment
Dividend Yield: 9%
Red Light
Apollo Investment (NASDAQ:AINV) is a closed-end financial management company that invests in various forms of debt, including senior secured loans, subordinated and mezzanine investments, and equity in private middle-market companies. (Note: Don’t confuse AINV with Leon Black-owned Apollo Management [NYSE:APO]).
AINV’s $2.7 billion portfolio comprises investments in over 50 entities. Revenues are just under $500 million, and its market cap is just under $2 billion. AINV pays out a 20 cents per share dividend, but the share price has languished over the past year, at one point dropping below $7.
And it’s no wonder: Revenues have slipped on a quarter-over-quarter comparison for the last two years, and earnings have followed suit. EPS growth for 2012 is forecast to be down nearly 150%, according to FINVIZ, and is forecast at 5% growth for the next five years. Rather anemic.
Worse news? AINV’s most recent dividend move after the December 2011 payout was to reduce it. I wouldn’t recommend an investment here regardless of the dividend yield.
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