Image Source: PixabayBlue Owl Capital Corp (OBDC) is a specialty finance company and business development company (BDC) focused on providing direct lending solutions to U.S. middle-market companies.The company seeks to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated, or mezzanine loans and equity-related instruments.Its investment strategies are intended to generate favorable returns across credit cycles with an emphasis on preserving capital.The company was founded in 2016 and is headquartered in New York, NY.Three key data points gauge OBDC or any dividend-paying firm.The key three are:(1) Price(2) Dividend(3) ReturnThose three keys also best tell whether any company has made, is making, and will make money.OBDC PriceBlue Owl’s share price grew 6.7% from $13.89 to $14.82 as of Thursday’s market close.In the past 5 years, the company’s share price has rarely been less than $8.25 nor more than $19.19. Blue Owl’s price reached that all-time high December 27, 2019.If shares trade in the range of $12.00 to $17.00 this next year, the recent $14.82 share price might grow to $16.00. Of course, OBDC share price could also drop about the same $1.18 estimated amount or more.My $1.18 price upside estimate is based on the median of Blue Owl’s one-year target prices estimated by 9 analysts tracking OBDC for brokers.OBDC DividendBlue Owl Capital has paid variable quarterly dividends since August 2019. The company’s most recent Q dividend of $0.43 was declared on August 7th for shareholders of record on September 30th and the payout was made on October 15th.That Annual dividend yield was 9.99%, as of Thursday’s closing price.OBDC ReturnsPutting it all together, a $2.66 estimated annual gross gain per share shows up by adding Blue Owl Capital’s annual $1.48 dividend to the estimated price upside of $1.18, totals that $2.66 gross gain.A little under $1000 buys 67 shares at Thursday’s $14.82 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.15 per share out of the $2.66 gross gain to give us a net gain of $2.51 X 67 shares = $168.17 for about a 16.75% estimated net gain for the year.Furthermore, the $99.90 annual estimated dividend from $1k invested is 6.7 times more than the $14.82 single share price. By these numbers, OBDC could be an ideal dividend dog.Therefore, you might choose to pounce on Blue Owl Capital Corp. It is an 18-year-old variable quarterly dividend-paying business development company with a 5-year dividend record.The exact track of OBDC’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report: Noah Holdings
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