New Report: Owl Rock Capital

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Owl Rock Capital Corp, known by the ticker symbol ORCC, is a mid-cap credit services company, operating in the financial services business sector in New York. This is my first report on Owl Rock for this Viital portfolio or any of my previous six dog of the week portfolios.

Owl Rock Capital Corp is a business development company based in the United States.

The fund makes investments in senior secured or unsecured loans, subordinated loans or mezzanine loans and also considers equity-related securities including warrants and preferred stocks also pursues preferred equity investments and common equity investments. Within private equity, it seeks to invest in growth, acquisitions, market or product expansion, refinancings and recapitalizations. It seeks to invest in middle market companies based in the United States, with EBITDA between $10 million and $250 million annually and/or annual revenue of $50 million and $2.5 billion at the time of investment.

Its investment objective is to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns. The company is an externally managed, closed-end management investment company that has elected to be regulated as a BDC under the Investment Company Act of 1940 Act, as amended.

Owl Rock was founded in 2018 is headquartered in New York NY.

Three key data points gauge any dividend equity or fund such as Owl Rock Capital Corp:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

ORCC Price

Owl Rock’s price per share was $14.80 as of yesterday's market close. One year ago its price was $14.48. Therefore, Owl Rock’s share price rose $0.32 or about 2.2% in the past year.

If Owl Rock’s stock trades in the range of $13.00 to $16.00 this next year, its recent $14.80 share price might rise by $0.80 to reach $15.60 by April 26, 2023. My $0.80 upside estimate is in keeping with the median of price upsides gauged by eleven analysts tracking ORCC for their brokerages.

ORCC Dividends

Owl Rock’s most recently declared quarterly dividend of $0.31 is payable May 13th to shareholders on record as of March 30th.

Owl Rock paid its first quarterly dividend August 15, 2019. The dividend has been variable between $0.02 and $0.44 over the past 3 years  and its annual payout of $1.24 is estimated to deliver a 8.38% annual yield per yesterday’s $14.80 price.

ORCC Returns

Adding a $1.24 ORCC annual dividend to the estimated one-year price upside of $0.80 shows a $2.04 potential gross gain, per share, to be reduced by any costs to trade ORCC shares.

At yesterday's $14.80 closing price per share, a little over $1000 would buy 68 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $2.04 gross gain estimate per share results in a net gain of $1.89 X68 shares = $128.52 for a 12.85% net gain on a $1,006.40 investment.

So it is that Owl Rock Capital Corp (ORCC) shows a possible 12.85% net gain including a 8.38% forward looking dividend yield.

Over the next year at this time our $1000 investment in ORCC could generate $83.80 in cash dividends alone. Note that a single share of ORCC stock bought at yesterday's $14.80 price is over five and one half times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the right time to buy ORCC shares based on their declared 2022 dividend. The forthcoming annual dividends from $1K invested is currently 5.66 times greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend!

All of the estimates above are speculation based on the past history of Owl Rock Capital Corp (ORCC) . Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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