NEW YORK, NY -- (Marketwire) -- 11/14/11 -- Some companies in the Business Development Company (BDC) industry have been performing strongly of late as a number of ups and downs in the global economy have created opportunities for investments and acquisitions. Companies that have not managed to cope well through the down economy are now becoming prime takeover options and larger or more successful business are circling. To better deal with the opportunity, many companies have started to raise money to better position them in the market place. The Paragon Report examines the outlook for companies in the Business Development Company (BDC) Industry and provides stock analysis on Prospect Capital Corporation (NASDAQ: PSEC) and Apollo Investment Corporation (NASDAQ: AINV). Access to the full company reports can be found at:
With the markets exceptionally volatile this month, investors are looking for safe havens plays. BDCs are well known for their generous shareholder return -- either via dividend payments or share repurchase. Share repurchases have gained popularity among companies because there's a total flexibility with them, whereas dividend payments require a commitment. When a company is forced to cut or suspend its dividend payment, shareholders are extremely likely to express their discontent.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the BDC industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
Prospect Capital is a closed-end investment company that lends to and invests in private and microcap public businesses. Presently the company pays an annual dividend of $1.22 a share for a hefty yield of around 12.7 percent. Last week the company announced that it provided a $15 million secured second lien loan to support the acquisition of a specialty pharmacy services company in a private equity backed transaction.
Prospect Capital said fiscal first quarter net income rose to $39.9 million vs. $25.6 million in the same quarter a year earlier.
Apollo Investment Corporation is a closed-end, externally managed, non-diversified management investment company. The company's investment portfolio is principally in middle-market private companies. From time to time, however, the company may also invest in public companies. Presently Apollo Investment pays an annual dividend of $1.12 a share for a yield of around 15 percent.
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