Why Apollo Investment, Royal Bank of Canada Should Be in Your Portfolio


NEW YORK (TheStreet) -- For investors who are leery of financial stocks after the carnage of the Great Recession, Royal Bank of Canada (RY) , Apollo Investment  (AINV) and Preferred Apartment Communities (APTS) should engender confidence.

While not as well known as Bank of America (BAC) , Goldman Sachs (GS) and Citigroup (C) , each has compelling features that should appeal to long-term investors, including a good dividend.

Most important, each of these publicly traded companies, in different sectors of the financial group, should prosper due to prevailing economic trends.

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Preferred Apartment Communities is a real estate investment trust, or REIT, that owns and operates multifamily properties. This segment of the housing market benefited from the recent recession. With fewer people buying homes more are renting housing, including multifamily homes. Shares of Preferred Apartment Communities, at around $8.70, are up nearly 9% for the year to date.

A business development company, Apollo Investment invests in middle-market products and equities. Companies in its portfolio are generally in the $50 million to $2 billion revenue range. Due to tighter lending standard by banks, there are more and better opportunities for BDCs like Apollo Investment. This results in a portfolio that has better companies with better terms, resulting in better results for BDCs like Apollo. Its stock, at around $8.75, is up over 3% for the year to date.

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