Blue Owl's BDC Already Cut Its Base Dividend to $0.31. Here's What to Watch as the Rest Report.
Is Blue Owl Capital the canary in the coal mine or a one-off situation that investors in other BDCs can ignore?
Overview
Blue Owl Capital (NYSE: OBDC) had little choice but to cut its dividend. As management explained, the cut was made to align the dividend "with the portfolio's go-forward earnings power." To be fair, dividend cuts are fairly normal for business development companies (BDCs), so this isn't a sign that Blue Owl Capital is specifically in any trouble.
That fact is a problem for the rest of the BDC sector, which faces the same headwinds as Blue Owl Capital. This is why investors should be watching closely as peers like Main Street Capital (NYSE: MAIN), Ares Capital Corporation (NASDAQ: ARCC), and FS KKR Capital (NYSE: FSK) report their results. Here's what to watch.
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Originally published at www.fool.com.