Blue Owl Capital Corporation Announces Quarterly Dividend of $0.31 (NYSE:OBDC)

Key Points

• Blue Owl declared a quarterly dividend of $0.31 per share payable July 15 to holders of record June 30, implying an annualized dividend of $1.48 and a yield of about 10.5%.
• The dividend is currently covered at a payout ratio of 97.4%, but analysts project $1.33 EPS next year which would raise the expected payout ratio to ~111.3%, indicating the dividend may not be sustainable if earnings decline.
• The company missed the quarter, reporting EPS of $0.31 vs. $0.35 expected and revenue of $391 million vs. $422 million expected, highlighting near-term performance pressure.

Blue Owl Capital Corporation (NYSE:OBDC - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Investors of record on Tuesday, June 30th will be given a dividend of 0.31 per share on Wednesday, July 15th. This represents a c) dividend on an annualized basis and a yield of 10.5%. The ex-dividend date of this dividend is Tuesday, June 30th.

Blue Owl Capital has a payout ratio of 97.4% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect Blue Owl Capital to earn $1.33 per share next year, which means the company may not be able to cover its $1.48 annual dividend with an expected future payout ratio of 111.3%.

Blue Owl Capital Price Performance

NYSE OBDC opened at $11.77 on Thursday. The business has a 50 day simple moving average of $11.30 and a 200 day simple moving average of $12.06. Blue Owl Capital has a 52-week low of $10.52 and a 52-week high of $15.19. The company has a debt-to-equity ratio of 1.26, a quick ratio of 1.17 and a current ratio of 1.17. The stock has a market cap of $5.85 billion, a price-to-earnings ratio of 9.49 and a beta of 0.64.

Blue Owl Capital (NYSE:OBDC - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.35 by ($0.04). Blue Owl Capital had a return on equity of 10.07% and a net margin of 33.89%.The business had revenue of $391.00 million for the quarter, compared to the consensus estimate of $422.02 million. Analysts anticipate that Blue Owl Capital will post 1.36 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Blue Owl Capital

Several large investors have recently made changes to their positions in OBDC. IFP Advisors Inc boosted its holdings in shares of Blue Owl Capital by 79.6% in the 3rd quarter. IFP Advisors Inc now owns 2,096 shares of the company's stock valued at $27,000 after buying an additional 929 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Blue Owl Capital by 166.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,115 shares of the company's stock valued at $27,000 after buying an additional 1,320 shares during the last quarter. Atlantic Union Bankshares Corp acquired a new stake in shares of Blue Owl Capital in the 3rd quarter valued at approximately $28,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in shares of Blue Owl Capital in the 3rd quarter valued at approximately $30,000. Finally, AG Campbell Advisory LLC acquired a new stake in shares of Blue Owl Capital in the 4th quarter valued at approximately $36,000. Institutional investors and hedge funds own 42.83% of the company's stock.

About Blue Owl Capital

Blue Owl Capital Corporation NYSE: OBDC is a publicly traded business development company sponsored by Blue Owl Capital, a global alternative asset manager. Launched in 2020, the firm provides customized financing solutions to middle-market companies across various industries. As an externally managed BDC, Blue Owl Capital Corporation leverages the deep credit‐investment capabilities of its sponsor to deliver flexible capital tailored to the needs of growing businesses.

The company's investment activities span a range of private credit products, including first‐lien senior secured loans, unitranche facilities, second‐lien financings, mezzanine debt, and minority equity co-investments.

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