OWL - Blue Owl Capital: Growing AUM To Fuel Dividend Growth
2024-04-01 17:57:22 ET
Summary
- Blue Owl Capital has declared a dividend increase of 29% to start the year. The dividend yield is now 3%.
- OWL has actually delivered a higher total return than its BDC counterpart Blue Owl Capital Corporation through its strong price performance.
- Based on my dividend discount calculation, I estimate a fair stock price of $22.50 per share. This represents a potential upside of 19%.
- The continued growth in AUM has been impressive. The portion of their AUM that is currently not earning a fee has the potential to bring in an additional $200M in revenue.
Overview
Although Blue Owl Capital ( OWL ) has such a short history that dates back to only 2021, the stock has already performed excellently. In less than 4 years since inception, the price is up 74%. I previously covered OWL in an article published in October of 2023 and I rated it a Strong Buy. Since then, the stock has surpassed the S&P 500 and has delivered a total return of over 55%. Now that the price has run up, I thought it would be a good time to revisit to share my thoughts on whether or not it makes sense to start a position at these highs....
Blue Owl Capital: Growing AUM To Fuel Dividend Growth