Apollo Investment Shares Plunged: What You Need to Know (AINV)

Apollo Investment Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of business development company, or BDC, Apollo Investment (Nasdaq: AINV ) were down as much as 15% earlier in the trading session after announcing third-quarter results.

So what: Rarely are the results of BDCs in primary focus -- and that's true of today's results. Apollo reported third quarter EPS of $0.32 and net investment income of $0.20. It also declared a dividend of $0.20 payable to shareholders in the fourth quarter. But, what has investors concerned is the company's announcement that it is considering up to a $200 million capital raise.

Now what: Foolish colleague Dan Caplinger couldn't have timed it any better when he took a closer look at Apollo earlier today. The allure of BDCs is their normally high dividend yields (in Apollo's case 14.1%), but you have to deal with the potentially dilutive hiccups that occur when these companies attempt to raise money through share offerings. Personally, I don't see much allure in Apollo's stagnant results of late. If you want a plump dividend, I'd still recommend taking a stroll down the mortgage REIT aisle.

Craving more input? Start by adding Apollo Investment to your free and personalized watchlist so you can keep track of the latest news with the company.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.