Published Tue, 22 Dec 2020 11:34:08 -0500 on Seeking Alpha
Seeking AlphaDividend Ideas | Financials Owl Rock's 10% Dividend Has The Bonus Of Equity UpsideDec. 22, 2020 11:34 AM ET|| About: Owl Rock Capital Corporation (ORCC)by: Ticker Tape ResearchTicker Tape Research Research Analyst, Long/Short Equity, Growth At Reasonable PriceSummaryIn July of 2019, Owl Rock Capital Corporation had its IPO.
Till the beginning of the pandemic, the stock was trading at a 20% premium to NAV.
With ORCC’s peers’ stocks rallying back to their pre-pandemic levels, ORCC has been overlooked and trades at a 10% discount to NAV and a 30% discount to historical levels.
ORCC continues to maintain a quality portfolio with low non-accruals that will produce a 10% yield for investors in 2021 plus upside equity returns.
Owl Rock Capital Corporation (ORCC) is a yield investor buy. Currently trading below its peers and its historical NAV at 10% and 30%, the company has equity upside plus a protected 10% dividend for yield-hungry investors.
ORCC currently pays a dividend of $0.31 per quarter and has paid special dividends every quarter since the IPO. This represents a 10% forward yield on the stock’s current share price of $13.00 over the next four quarters. Combine this with the simple 10% equity upside to NAV and investors are looking at potentially 20% returns for 2021, not to mention half of those returns are in cash. The stock’s next ex-dividend date is December 30th. This is a great time for value and yield-seeking investors to get into ORCC at a discount while the rest of the market is busy fiddling with manic stock valuations.
Depiction created by the author using the company's images
ORCC has been around since 2016 but recently began trading publicly after its IPO in July of 2019. The company is currently a $5.0B market cap, $5.7B NAV BDC that focuses on investing in the upper end of middle-market companies with EBITDA of +$90M. ORCC is managed and advised by Owl Rock Capital LP (Owl Rock... Read more