Dividends4Life: High-Yield BDC Pays 10.4%, Covered Dividend, Discount From Book, Upside

This company is a promising BDC to hold during a rising rate environment. Strong focus on floating-rate debt could help it outperform as the Fed continues to hike interest rates in 2018. The BDC overearns its dividend with net investment income, meaning there are limited risks of a dividend cut over the short haul. Its shares sell for a discount to NAV. An investment in the stock yields 10.38 percent.

Apollo Investment Corporation (NASDAQ:AINV) is a promising BDC income play for income investors seeking high recurring dividend income. The business development company has positive interest rate sensitivity which sets Apollo up for income gains during the current rate hiking cycle. Apollo Investment Corporation has good dividend coverage, and shares sell for a reasonable NII multiple. An investment in Apollo at today's price point comes with a dividend yield in excess of 10 percent.

Source: Seeking Alpha

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