Assessing the Upcoming Dividend and Financial Health of Blue Owl Capital Inc
Blue Owl Capital Inc(OWL, Financial) recently announced a dividend of $0.08 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Blue Owl Capital Inc's dividend performance and assess its sustainability.
What Does Blue Owl Capital Inc Do?
Blue Owl Capital Inc is an alternative asset management firm. It provides investors access to asset management capital solutions through its Direct Lending and GP Capital Solutions business segments. Its investor base includes a diversified mix of institutional investors, including public and private pension funds, endowments, foundations, family offices, private banks, high net worth individuals, asset managers, and insurance companies.
A Glimpse at Blue Owl Capital Inc's Dividend History
Blue Owl Capital Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Blue Owl Capital Inc's Dividend Yield and Growth
As of today, Blue Owl Capital Inc currently has a 12-month trailing dividend yield of 3.91% and a 12-month forward dividend yield of 5.69%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Blue Owl Capital Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Blue Owl Capital Inc stock as of today is approximately 3.91%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Blue Owl Capital Inc's dividend payout ratio is 6.63, which may suggest that the company's dividend is sustainable. However, Blue Owl Capital Inc's profitability rank of 2 out of 10 as of 2023-09-30, suggests the dividend may face challenges in the future, considering the company has reported net profit in 1 year out of the past 10 years.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. Blue Owl Capital Inc's growth rank of 2 out of 10 suggests that the company has limited growth prospects, which could impact the sustainability of its dividends. However, Blue Owl Capital Inc's strong revenue per share and a 3-year revenue growth rate of approximately 74.40% per year, outperforming about 90.91% of global competitors, provide a counterbalance to the relatively low growth rank, indicating a robust revenue model.
Investor Takeaways
When considering Blue Owl Capital Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors are faced with a mixed picture. On one hand, the company's strong revenue growth and low payout ratio may hint at a sustainable dividend. On the other hand, the low profitability and growth ranks raise concerns about the long-term viability of these dividends. As value investors, it's crucial to weigh these factors carefully and monitor any changes in the company's financial health. For those looking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users have the advantage of utilizing the High Dividend Yield Screener for informed decision-making.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
