Excessive Dividend 50: Blue Owl Capital Company

Revealed on October twenty second, 2025 by Felix Martinez

Excessive-yield shares pay out dividends which can be considerably greater than the market common. For instance, the S&P 500’s present yield is just ~1.2%.

Excessive-yield shares could be notably useful in supplementing retirement earnings. A $120,000 funding in shares with a mean dividend yield of 5% creates a mean of $500 a month in dividends.

Blue Owl Capital Company (OBDC) is a part of our ‘Excessive Dividend 50’ collection, which covers the 50 highest-yielding shares within the Positive Evaluation Analysis Database.

We’ve got created a spreadsheet of shares (and carefully associated REITs, MLPs, and so on.) with dividend yields of 5% or extra.

You possibly can obtain your free full listing of all securities with 5%+ yields (together with vital monetary metrics corresponding to dividend yield and payout ratio) by clicking on the hyperlink under:

Subsequent on our listing of high-dividend shares to evaluate is Blue Owl Capital Company (OBDC).

Enterprise Overview

Blue Owl Capital Company is a publicly traded enterprise improvement firm (BDC) headquartered in New York, New York. Based in October 2015, the agency accomplished its preliminary public providing in July 2019. Blue Owl primarily invests in and gives financing to U.S. middle-market corporations, concentrating on these with annual EBITDA between $10 million and $250 million or revenues starting from $50 million to $2.5 billion on the time of funding.

The corporate generates roughly $1.6 billion in annual gross funding earnings and holds a market capitalization of $6.6 billion, making it the third-largest publicly traded BDC. Blue Owl focuses on supporting growth-oriented corporations by means of strategic investments and lending options.

On July 6, 2023, the agency rebranded from Owl Rock Capital Company to Blue Owl Capital Company, updating its Nasdaq ticker from ORCC to OBDC to mirror its new identification.

Blue Owl Capital Company (OBDC) reported robust monetary outcomes for the second quarter ended June 30, 2025. GAAP internet funding earnings (NII) per share was $0.42, exceeding expectations by $0.03, whereas income elevated 22.5% year-over-year to $485.8 million. Adjusted NII per share rose barely to $0.40 from $0.39 in Q1 2025. The Board of Administrators declared a complete dividend of $0.39 per share for the quarter, together with a $0.02 supplemental dividend, reflecting an annualized yield of 10.4%. Internet asset worth per share was $15.03, modestly down from $15.14 within the prior quarter as a consequence of choose write-downs, partially offset by earnings exceeding dividends.

Throughout the quarter, Blue Owl dedicated $1.1 billion to new investments whereas receiving $1.9 billion in repayments and gross sales, leading to a internet discount of invested capital. The corporate’s portfolio consisted of 233 corporations throughout 30 industries, with whole investments valued at $16.9 billion. First-lien senior secured debt represented 75.8% of the portfolio, and solely 0.7% of the investments had been on non-accrual standing, demonstrating robust credit score high quality and portfolio stability. Weighted common yields on debt investments remained engaging at roughly 10.6% at honest worth.

OBDC ended the quarter with $360 million in money, $9.3 billion in whole debt, and $3.7 billion in undrawn credit score capability, sustaining compliance with all monetary covenants. Working bills elevated barely to $266.8 million, primarily from curiosity, administration, and incentive charges associated to the current merger. CEO Craig Packer emphasised that the portfolio’s efficiency helps constant earnings and engaging risk-adjusted returns, positioning Blue Owl to capitalize on alternatives within the middle-market lending sector whereas sustaining robust liquidity and capital flexibility.

Supply: Investor Relations

Development Prospects

The corporate’s internet funding earnings (NII) per share is very depending on the unfold between the yields on its investments and its personal funding prices. On the finish of Q2 2025, the weighted common whole yield on debt and income-producing securities was 10.6%, down 130 foundation factors year-over-year, whereas the typical unfold declined 50 foundation factors to five.8%.

Excessive rates of interest can profit Blue Owl, however provided that the corporate maintains management over its funding prices. Given the already elevated FY2025 NII per share, additional progress is unlikely within the close to time period as market dynamics evolve.

Concerning distributions, Blue Owl at present pays a quarterly base dividend of $0.37 per share. Particular dividends have been frequent in current intervals as a consequence of extra positive aspects, however the base dividend is anticipated to develop modestly at round 2% yearly, a tempo thought of sustainable given the corporate’s earnings profile.

Supply: Investor Relations

Aggressive Benefits & Recession Efficiency

Blue Owl Capital has robust benefits as a result of it focuses on lending to U.S. middle-market corporations with secure money flows. The corporate’s expertise in structuring loans and investments, mixed with its stable relationships with its portfolio corporations, allows it to establish engaging alternatives and make knowledgeable funding choices. Most of its loans are floating-rate, which may also help earn extra when rates of interest rise.

The corporate additionally performs properly in downturns. Its portfolio is generally senior secured debt, which is safer, and only a few investments are on non-accrual. This conservative strategy and give attention to cash-generating companies assist Blue Owl preserve secure earnings and dividends, even throughout recessions, whereas persevering with to offer regular returns to buyers.

Supply: Investor Relations

Dividend Evaluation

Blue Owl Capital’s annual dividend is $1.48 per share. At its current share worth, the inventory has a excessive yield of 11.4%.

Given the corporate’s earnings outlook for 2025, NII/share is anticipated to be $1.65. Because of this, the corporate is anticipated to pay out 90% of its internet earnings per share to shareholders. This doesn’t embody some small particular dividends which can be typically declared.

Closing Ideas

Blue Owl Capital is among the largest BDCs, with a diversified portfolio throughout totally different corporations and industries. Though it has a comparatively brief historical past as a publicly traded firm, it has proven robust fundamentals.

We count on annualized returns of about 9.9% over the medium time period, principally pushed by its dividend, and charge the inventory as a maintain.

Excessive-Yield Particular person Safety Analysis

Different Positive Dividend Sources