Just Three Days Till Blue Owl Capital Inc. (NYSE:OWL) Will Be Trading Ex-Dividend

Simply Wall St
·3 min read
1

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Blue Owl Capital Inc. (NYSE:OWL) is about to go ex-dividend in just three days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Accordingly, Blue Owl Capital investors that purchase the stock on or after the 19th of August will not receive the dividend, which will be paid on the 29th of August.

The company's next dividend payment will be US$0.11 per share. Last year, in total, the company distributed US$0.44 to shareholders. Last year's total dividend payments show that Blue Owl Capital has a trailing yield of 3.4% on the current share price of $13.03. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing.

See our latest analysis for Blue Owl Capital

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Blue Owl Capital paid a dividend last year despite being unprofitable. This might be a one-off event, but it's not a sustainable state of affairs in the long run.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

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historic-dividend

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. Blue Owl Capital was unprofitable last year, although, we can see that at least its loss per share reduced by 88% on the previous year.

One year is not very long in the grand scheme of things though, so we wouldn't draw too strong a conclusion based on these results.

Unfortunately Blue Owl Capital has only been paying a dividend for a year or so, so there's not much of a history to draw insight from.

We update our analysis on Blue Owl Capital every 24 hours, so you can always get the latest insights on its financial health, here.

Final Takeaway

Should investors buy Blue Owl Capital for the upcoming dividend? It's hard to get used to Blue Owl Capital paying a dividend despite reporting a loss over the past year. We're unconvinced on the company's merits, and think there might be better opportunities out there.

So if you want to do more digging on Blue Owl Capital, you'll find it worthwhile knowing the risks that this stock faces. For instance, we've identified 2 warning signs for Blue Owl Capital (1 is concerning) you should be aware of.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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