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Still Waiting For A Dividend Increase From Oaktree

Published Mon, 05 Aug 2019 18:01:52 -0400 on Seeking Alpha

As shown below, there are a handful of BDCs that pay very low dividends as a percentage of book value including Oaktree's BDC vehicles: Oaktree Specialty Lending (OCSL) and Oaktree Strategic Income (OCSI).
Keep in mind that BDCs such as Solar Capital (SLRC), Golub Capital (GBDC), Solar Senior Capital (SUNS), and PennantPark Floating Rate Capital (PFLT) have lower-yielding safer assets by design. Hercules Capital (HTGC) and Main Street Capital (MAIN) are internally managed with lower-cost operational structures giving them the ability to distribute higher amounts.

OCSL Dividend Coverage Update
OCSL has covered its dividend by an average of 125% over the last five quarters mostly due to improved portfolio earnings and reduced borrowing rates. However, OCSL’s dividend is still 47% lower than two years ago and needs to be increased as it's well below the portfolio earnings each quarter likely due to management wanting to retain earnings to improve NAV per share. Also, the last two quarters included $10 million of original issue discount (“OID”) accretion related to its investment in Dominion Diagnostics:
The increase of $7.9 million, or 11.5%, in our total investment income for the six months ended March 31, 2019, as compared to the six months ended March 31, 2018, was due primarily to a $12.8 million increase in interest income, which was primarily attributable to $9.9 million of OID accretion related to our first lien term loan and revolver with Dominion... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
MONROE CAPITAL 10.48   18.4 0.57 1.40 13.60
THL CREDIT 6.96   0.0 -0.86 0.84 12.09
PENNANTPARK INVESTMENT 6.32   21.8 0.29 0.72 11.32
APOLLO INVESTMENT 16.78   14.2 1.18 1.80 10.73
TCP CAPITAL 13.75   29.3 0.47 1.44 10.48
PENNANTPARK FLOATING RATE CAPITAL 11.68   30.0 0.39 1.14 9.81
HERCULES TECH GROWTH CAP 13.26   10.0 1.32 1.28 9.55
SOLAR SENIOR CAPITAL 17.32   18.8 0.92 1.41 8.17
SOLAR CAPITAL 20.87   12.4 1.69 1.64 7.93
OAKTREE STRATEGIC INCOME 8.10   19.8 0.41 0.62 7.51
CAPITAL SOUTHWEST 21.81   12.2 1.78 1.60 7.21
GOLUB CAPITAL BDC 18.55   15.7 1.18 1.28 6.89
MEDLEY CAPITAL 2.61   0.0 -1.62 0.15 5.81
MAIN STREET CAPITAL 43.18   16.8 2.57 2.46 5.69

MONROE CAPITAL - MRCC
MONROE CAPITAL - MRCC  


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Building A Retirement Portfolio With 6% To 9% Yield: Part 4
Building A Retirement Portfolio With 6% To 9% Yield: Part 2
Building A Retirement Portfolio With 6% To 9% Yield: Part 1
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