What Are You Really Buying When You Buy Apollo Investment Corporation?

Apollo Investment Corporation  (NASDAQ: AINV  ) is a stalwart in the business development company sector. As one of the earliest BDCs on the market, Apollo Investment has a storied history -- and a beastly, 9% annual dividend yield. Since IPO, Apollo has returned more than 80% to investors, assuming dividends were reinvested.

Apollo Investment's dividend is the by-product of more than 100 private equity and debt investments, managed externally by Apollo Global Management (NYSE: APO  ) . Some, however, are more important than others. 

In the following slideshow, I break out its five largest investments, their yields, and their size relative to the total portfolio. The last slide shows the company's historical realized gains or losses as a percentage of assets at each year end, which helps explain the returns you don't see in the dividend alone -- gains or losses from the sale of its portfolio investments. 

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The Businesses Behind Apollo Investment Corporation from The Motley Fool


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