Blue Owl Capital Corporation (OBDC): A Bull Case Theory

We came across a bullish thesis on Blue Owl Capital Corporation on Investing Lawyer’s Substack. In this article, we will summarize the bulls’ thesis on OBDC. Blue Owl Capital Corporation’s share was trading at $14.11 as of August 25^th. OBDC’s trailing and forward P/E were 9.34 and 9.23 respectively according to Yahoo Finance.

Blue Owl Capital Corporation (OBDC), formerly Owl Rock Capital, is a business development company focused on financing middle-market companies, making it particularly appealing for income-focused investors with a current dividend yield of approximately 11.3%. The company’s share price has historically remained range-bound, reflecting stability rather than volatility, which suits long-term income investors. OBDC’s portfolio is heavily concentrated in senior secured loans, providing reliable interest income across diverse sectors such as healthcare, technology, and manufacturing.

The company’s conservative financial approach is a key strength, with a debt-to-equity ratio of roughly 0.9, low for a BDC, helping mitigate risk during economic downturns. In its latest quarter, OBDC reported net investment income of $0.39 per share, comfortably covering its quarterly dividend of $0.37 with a payout ratio of about 83%. This coverage, combined with a portfolio weighted toward first-lien loans, ensures dividend reliability while preserving capital security.

The company has also achieved three consecutive years of dividend growth, signaling consistency, though the growth rate and payout ratio suggest moderate expansion. Profitability remains strong, with a 38% margin highlighting the high earnings potential of its business model. Overall, OBDC represents a compelling investment for income-oriented investors, offering both yield stability and attractive margins.

Its combination of conservative leverage, diversified loan exposure, and consistent dividend coverage positions it as a favorable option in the BDC space, particularly for those prioritizing income and long-term financial resilience. Investors can expect steady returns and a relatively low-risk profile relative to other income-generating assets, making OBDC a noteworthy consideration for portfolios focused on reliable dividends and capital preservation.

Previously we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted the company’s diversified asset management business, record net inflows, strategic acquisitions, strong revenue growth, and technological edge through Aladdin®. The stock has appreciated by 14.62% since our coverage. Investing Lawyer presents a similar bullish thesis on Blue Owl Capital Corporation (OBDC), emphasizing dividend reliability, conservative leverage, and stable income from senior secured loans, appealing to income-focused investors.

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Disclosure: None.