Apollo Investment Corp. (AINV): The Stats To Know

Perhaps most troubling is the potential that Congress will see BDCs as an abusive tax-avoidance measure and take away their tax benefits. In late March, filed for an IPO of its Liberty Harbor Capital BDC, specifically citing “reduced reporting and other burdens” as part of its decision to use the BDC structure. As the government looks for ways to raise tax revenue, Goldman’s move doesn’t cast a favorable light on BDCs, despite their legitimate function in providing capital financing to smaller companies without access to traditional capital markets.

In Apollo Investment Corp. (NASDAQ:AINV)’s report, look for comments from management on how the BDC plans to deploy the capital it raised from a secondary offering earlier this month. Although the company said it planned to use the $163 million in proceeds to reduce debt under its credit facility, investors may prefer it if Apollo finds more lucrative uses for the cash to better support its healthy dividend.

The article How Apollo Investment Can Sustain Its Dividend originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Goldman Sachs.

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