Blue Owl Capital

OBDC

Market cap $6.73B

There is a major market disconnect in which there are blue-chip dividend payers offering 11%+ yields right now, despite posting strong fundamentals. I discuss why the market is bearish on these stocks and why I think the fears are overblown. I also share two high-yield stocks that I think are attractive buys at current pricing.

Ares Capital (ARCC) and Blue Owl Capital (OBDC) are top BDCs offering double-digit dividend yields and strong portfolio diversification. OBDC stands out with a higher forward yield (~13.3%), superior industry diversification, and a deeper discount to book value than ARCC. Both ARCC and OBDC maintain robust dividend safety, with high percentages of senior secured loans and consistent payout histories.

The Dividend Harvesting Portfolio weathered a choppy week, adding GPIQ and increasing OBDC, with forward annualized dividend income now exceeding $2,700. Market volatility persists amid AI bubble fears and weak labor data, but Nvidia's upcoming earnings could spark an end-of-year rally if results impress. GPIQ offers uncapped upside and strong monthly income, while OBDC remains attractive with a high yield and discount to NAV, even in a lower-rate environment.

OBDC drops its planned merger with OBDC II as market conditions sour, raising investor concerns and prompting a reassessment of strategic options.

Analysis continues to show merger will create long-term value, but current market volatility is cause to reevaluate alternatives in the future NEW YORK , Nov. 19, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC") and Blue Owl Capital Corporation II ("OBDC II") today announced that the previously proposed merger of OBDC and OBDC II has been terminated, with plans to reevaluate alternatives in the future. This decision reflects the Boards' commitment to acting in the best interests of shareholders and is based on management's recommendation due to current market conditions.

3 dividend stocks with attractive dividend yields, high-quality business models and management teams, and very strong growth potential have pulled back lately. I look at the risks that have prompted the market to beat them down aggressively. I also detail why I think the risks are overblown, and these stocks are compelling buys on the dip.

The Fed's dovishness has been the key driver for the BDC sell-off. The idea is that lower interest rates should lead to lower dividends (i.e., BDCs cutting their dividend across the board). While it is a process that takes time, the current data show that many BDCs are well-positioned to safeguard their existing dividends.

Of 35 November Dividend Power Dogs, 12 are recommended for "safer" dividends, with free-cash-flow-yields exceeding dividend-yields, and returns from $1,000 invested equaling-or-exceeding share-price, making them ideal buys. Analyst forecasts project average net gains of 36.78% for the top ten DiviPower stocks by November 2026, with strong upside potential in select financials. Caution is advised for stocks with negative free cash flow margins, as 18 of 35 are considered cash-poor and riskier for dividend sustainability.

Two beaten-down income machines are flashing rare deep-value signals. Major macro trends are creating powerful tailwinds that the market is overlooking. I am doubling down while prices stay dislocated and yields remain elevated.

BDCs have had a rough year so far. Yet, Q3 earnings data points indicate that the tide could be turning. While there are some tangible improvements in BDC business environment, many risks remain open.