BDCs to Buy – Apollo Investment Management (AINV)
AINV Dividend Yield: 9.3%
My favorite BDC for individual investors is Apollo Investment Management (AINV). AINV makes loans to and invests in middle market companies and they have the expertise of a parent company — Apollo Global Management (APO) — that is one of the most successful private equity firms in the world.
Apollo has repositioned its portfolio in favor of senior secured loan, and the majority of the portfolio is variable-rate so they could actually benefit from higher interest rates. The company has investments in 111 different companies spread across a wide range of industries as of the end of the first quarter.
AINV stock itself currently trades at just 96% of net asset value and currently yields 9.3%.