AINV: 10.6% Dividend Yield With Potential Book Value Upside From Oil Hedges


  • As predicted in the previous article, AINV’s NAV per share declined due to $23 million in realized losses including its hedges as oil prices headed higher and ‘legacy’ investments.
  • However, 80% of the total portfolio is now considered to be invested in its “core strategies” with 55% in first-lien and no new non-accruals.
  • Recent investments were at lower yields and likely to support “the increase in our regulatory leverage which will become effective April 2019”.
  • Management is already working with and positioning borrowers for increased leverage and will likely be in place well-before April 2019.
  • The company repurchased another 1.4 million shares during the recent quarter.

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Current BDC Dividend Yields

Business development companies (“BDCs”) are currently paying dividend yields between 7% and 13% with a handful of companies that increased dividends so far this year including Ares Capital (ARCC) and Main Street Capital (MAIN) as predicted in “This High-Yielding, Sleep-Well Investment Is About To Announce A Dividend Increase“.