Dividends4Life: 8% Yield, 3% Discount, Q1 2021 Update

8% Yield, 3% Discount, Q1 2021 Update

Posted by D4L | Friday, June 25, 2021 | | 0 comments »

This stock yields 8.62%.It's trading at a 3% discount to NAV/Share, vs. a 10% average premium for the BDC industry. We compare the company's latest Q1 '21 and trailing figures to BDC Industry average valuations, profitability, and performance.

Owl Rock Capital Corp. (ORCC) is a business development company, which lend to privately held companies, some of whom may also be backed by a separate sponsor, such as a private equity fund, which adds some security to the mix. ORCC is one of the biggest players in the BDC arena, with a $5.57B market cap. It mainly focuses on middle market firms, with an average revenue of ~$449M, average EBITDA of $104M, and average leverage of 5.5X. The Loan to Value averaged 45% across its portfolio.

Source: Seeking Alpha

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