You won’t find many safe double-digit payouts just sitting around. Yield hunters have to venture out into lesser-known industries, like master limited partnerships or real estate investment trusts. Business Development Companies (BDCs) provide another source of high yields in today’s market. These firms invest in privately held businesses and pay out the profits to shareholders. And because most of these borrowers don’t qualify for traditional bank loans, BDCs collect surprisingly high-interest rates.
Apollo Investment Corp. (NASDAQ:AINV) represents one of my favorites. Shares sit at the higher end of the risk spectrum, as the 11.3% yield might imply. But for those willing to stomach more ups and downs, this name could provide a nice income supplement in an already well-balanced portfolio. Apollo has a track record of making smart loans, with only a few nonperforming loans on the books. From a safety perspective, this makes me comfortable that its borrowers will keep paying the bills on time. Most of these loans are secured debt, which means that borrowers have pledged some out of collateral (i.e. property, plants, or equipment). This reduces Apollo’s potential losses in the event of a default, ensuring dividends keep getting mailed out to shareholders.
Source: Income Investors
Related Articles:
- Weekly Links: May 13, 2017
- 5 Dividend Stocks With A Low P/B Ratio
- Harvest the Fruit
- 4 Dividend Stocks Delivering The Secret To Successful Investing
- The Magnificent Marvelous Money Machine
This 11.3% Yield Looks Compelling
Posted by D4L | Friday, March 02, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
These investments take advantage of the potential for growth in the share price and dividend yield. Yet, when it comes to undervalued compan...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.