Blue Owl Capital Seeks 10.4% Yield with Cheap Dividends Hunt

Blue Owl Capital is hunting for cheap dividends with a yield of 10.4%. The company's strategy is focused on finding value in dividend-paying stocks, despite the common notion that price does not determine value. Blue Owl Capital believes that paying a low price for a stock with a high dividend yield can be a good investment strategy.

Blue Owl Capital Corporation (NYSE: OBDC) is actively seeking dividend-paying stocks with high yields, adhering to the strategy that a low price does not necessarily determine a stock's value. The company's latest quarterly earnings report, released on August 6, 2025, revealed an earnings per share (EPS) of $0.40, exceeding estimates, and a quarterly dividend of $0.37 per share, yielding 10.4% [1].

Blue Owl Capital's approach to investing in dividend-paying stocks is based on the premise that a high dividend yield can be a good investment strategy, even if the stock is trading at a low price. The company's strategy involves identifying stocks with strong dividend payouts and low valuations, aiming to generate consistent income for its investors.

The company's recent earnings report also highlighted its strong financial performance. Blue Owl Capital reported a net margin of 38.29% and a return on equity of 11.24% for the quarter, indicating its operational efficiency and profitability. Additionally, the company's debt-to-equity ratio of 1.20 and current ratio of 0.80 suggest a conservative financial position [1].

Blue Owl Capital's dividend payout ratio (DPR) of 98.01% is another indicator of its commitment to dividend sustainability. The company's dividend payout ratio is near its maximum, indicating that a significant portion of its earnings is being distributed to shareholders. However, the company's spillover income of $0.33 per share provides a buffer for maintaining the dividend, even in a downturn [2].

The company's strategic expansion into equipment leasing and digital infrastructure aims to boost its return on equity (ROE) by 50–75 basis points. This expansion is expected to enhance the company's long-term value creation and risk-adjusted returns [2].

In conclusion, Blue Owl Capital's pursuit of cheap dividends with a high yield of 10.4% is a strategy that aligns with its investment philosophy and strong financial performance. The company's focus on dividend sustainability, operational efficiency, and strategic expansion positions it as a compelling opportunity for income-focused investors.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-virtu-financial-llc-takes-position-in-blue-owl-capital-corporation-nyseobdc-2025-08-13/
[2] https://www.ainvest.com/news/blue-owl-capital-attractive-proposition-double-digit-yields-6-25-nav-discount-2508/