Owl Rock Capital: Great Results Combined With A Shareholder-Friendly Dividend Policy

Nov. 04, 2022 9:02 AM ETOwl Rock Capital Corporation (ORCC)14 Comments
Daniel P. Varga profile picture
Daniel P. Varga
814 Followers

Summary

  • ORCC’s management reinstated the dividend policy laid out in 2019. From now on, there will be a regular and a supplemental dividend in every quarter.
  • Owl Rock Capital is yielding 9.83%. However, if we include the supplemental dividends as well, the forward dividend yield is above 11%.
  • ORCC reported great third quarter results and as long as the interest rates climb the NII will grow. I expect a 5-6% NII growth for the fourth quarter.

Hands holding up columns of bar graph

We Are

Investment thesis

Owl Rock Capital Corporation (NYSE:ORCC) is the third largest BDC among the 48 publicly traded business development companies. The management introduced a new shareholder-friendly dividend policy based on the original policy established in 2019. From now

ORCC estimated dividend 2019

Quarterly Earnings Presentation Q2 2019

ORCC new dividend policy 2022

Quarterly Earnings Presentation Q3 2022

Owl Rock Capital debt to equity
Data by YCharts

ORCC portfolio yield

Quarterly Earnings Presentation Q3 2022

ORCC stock valuation
Data by YCharts

This article was written by

Daniel P. Varga profile picture
814 Followers
Started investing more than 10 years ago. Mainly focusing on Large-Caps and occasional story stock. In addition, I am a regular buyer and analyzer of REITs, mREITS, and asset managers. I also have a dividend-focused portfolio with an investment horizon of 15 to 25 years. Follow me for comparison articles such as AAL vs. LUV or USB vs. C.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (14)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.