Revealed on October twenty second, 2025 by Felix Martinez
Excessive-yield shares pay out dividends which can be considerably larger than the market common. For instance, the S&P 500’s present yield is barely ~1.2%.
Excessive-yield shares will be notably useful in supplementing retirement revenue. A $120,000 funding in shares with a median dividend yield of 5% creates a median of $500 a month in dividends.
Blue Owl Capital Company (OBDC) is a part of our ‘Excessive Dividend 50’ sequence, which covers the 50 highest-yielding shares within the Certain Evaluation Analysis Database.
We’ve created a spreadsheet of shares (and intently associated REITs, MLPs, and many others.) with dividend yields of 5% or extra.
You may obtain your free full checklist of all securities with 5%+ yields (together with essential monetary metrics corresponding to dividend yield and payout ratio) by clicking on the hyperlink under:
Subsequent on our checklist of high-dividend shares to assessment is Blue Owl Capital Company (OBDC).
Enterprise Overview
Blue Owl Capital Company is a publicly traded enterprise growth 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 offers financing to U.S. middle-market firms, focusing 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 revenue and holds a market capitalization of $6.6 billion, making it the third-largest publicly traded BDC. Blue Owl focuses on supporting growth-oriented firms 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 replicate its new id.
Blue Owl Capital Company (OBDC) reported sturdy monetary outcomes for the second quarter ended June 30, 2025. GAAP web funding revenue (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.
Through the quarter, Blue Owl dedicated $1.1 billion to new investments whereas receiving $1.9 billion in repayments and gross sales, leading to a web discount of invested capital. The corporate’s portfolio consisted of 233 firms 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 sturdy 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 latest 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 sturdy liquidity and capital flexibility.
Supply: Investor Relations
Progress Prospects
The corporate’s web funding revenue (NII) per share is extremely 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 common 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 latest durations as a consequence of extra positive factors, 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 sturdy benefits as a result of it focuses on lending to U.S. middle-market firms with steady money flows. The corporate’s expertise in structuring loans and investments, mixed with its strong relationships with its portfolio firms, allows it to establish engaging alternatives and make knowledgeable funding selections. Most of its loans are floating-rate, which can assist 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 concentrate on cash-generating companies assist Blue Owl preserve steady revenue and dividends, even throughout recessions, whereas persevering with to supply regular returns to traders.
Supply: Investor Relations
Dividend Evaluation
Blue Owl Capital’s annual dividend is $1.48 per share. At its latest share value, 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 web revenue per share to shareholders. This doesn’t embody some small particular dividends which can be typically declared.
Closing Ideas
Blue Owl Capital is likely one of the largest BDCs, with a diversified portfolio throughout completely different firms and industries. Though it has a comparatively quick historical past as a publicly traded firm, it has proven sturdy 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.
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