OBDC Stock: Dividend Cut to $0.31, NII, Non-Accruals, NAV

Which Blue Owl fund is OBDC?

“Blue Owl Capital Corporation” is the New York Stock Exchange-listed business development company (BDC) that trades as OBDC. It is externally managed by Blue Owl Credit Advisors LLC and lends to US middle-market companies: at June 30, 2026 it held 229 portfolio companies worth $15.0 billion at fair value, 73.2% of it first-lien loans (52% of those unitranche) and 96.0% floating rate. Two similarly named funds cause most of the confusion:

So the premise that OBDC “absorbed” OBDC II is wrong: the one merger OBDC completed in 2025 was with OBDE. What OBDC II did instead, return of capital in place of tender offers, is in our OBDC II page.

The dividend: $0.37 to $0.31, and what paid for it

The table is from OBDC’s earnings releases. “Adjusted” NII removes the accretion that came from accounting for the OBDE merger as an asset purchase (a non-GAAP measure, defined in each release). Coverage is NII per share divided by dividends declared per share for the same quarter, on rounded per-share figures (our arithmetic).

Three things the quote pages leave out.

The cut was announced with the Q1 results, not in a filing of its own. The May 6, 2026 release says the board declared a Q2 base dividend of $0.31 “reflecting the Board’s decision to adjust the Company’s base dividend given the current operating environment and to align with the portfolio’s go-forward earnings power following an extended period of declining base rates and spread compression.” The $0.31 was then repeated for Q3 in the 10-Q’s subsequent-events note (declared August 4). The supplemental dividend is separate: $0.02 for Q2 was declared on August 4, payable by September 15. The release says the supplemental framework “remains in place”; whether there is one for Q3 will be known when results come out on November 4.

Q2 coverage includes a one-off. Investment income was $401.3 million, down 17.4% from $485.8 million a year earlier (our arithmetic). NII per share still rose from $0.32 to $0.36 in the quarter, for two reasons the release names: interest expense fell as average borrowings dropped from $9.3 billion to $8.4 billion, and income rose, because “other income” was $20.3 million. The six-month figure is $23.7 million, so Q1 was about $3.4 million (our arithmetic): the step-up of about $16.9 million is $0.034 a share on 495.4 million weighted shares, before the incentive fee and tax. The release attributes the quarter to “higher dividend income and non-recurring other income from a realization of a preferred equity investment” and does not give the amount. Preferred equity at fair value fell from $536.9 million to $262.5 million in the quarter. Subtract the whole step-up from the $0.34 adjusted NII and you are at about $0.31, the size of the new base dividend, which leaves little for a supplemental (our arithmetic, an estimate, not a company figure).

The “9.3% yield” in the release is a yield on NAV. Its footnote divides the annualized $0.31 base and $0.02 supplemental by the $14.26 NAV less the $0.02. It is not a yield on the share price. At the $11.04 average price OBDC itself paid for shares in June, the annualized $0.31 base dividend is 11.2% (our arithmetic); that is the company’s buyback price in June, not today’s quote. The 10-Q also reports undistributed taxable earnings (“spillover”) of about $0.29 a share at June 30, taxable income earned but not yet paid out, which “will be carried forward toward distributions.”

NAV per share and the company’s own buybacks

NAV per share fell in six straight quarters, from $15.26 at the end of 2024 to $14.26, a drop of $1.00 (minus 6.6%, our arithmetic). The Q2 release blames “markdowns on a small number of names, partially offset by over-earning the dividend and accretive share repurchases.” The 10-Q says the markdown “was primarily driven by a small number of investments and not a deterioration in the overall quality of our portfolio.” The two largest unrealized decreases in Q2 were Loparex ($79.1 million) and Cornerstone OnDemand ($26.8 million), both covered below.

OBDC has been buying its own stock. The filings give prices, and they show the market’s view of NAV better than any quote page:

In the first half of 2026 it bought 6,305,963 shares for $70.3 million, and $229.7 million of the $300 million program approved on February 17 remained at June 30. Buying below NAV adds to NAV per share, as the release says, but it also shrinks the company: shares outstanding went from 499.4 million to 493.1 million in six months.

Non-accruals: seven companies, and who is on the list

A loan is on non-accrual when OBDC has stopped booking its interest because there is “reasonable doubt that principal or interest will be collected in full.” At June 30, 2026 the 10-Q’s own table shows $428.7 million at amortized cost (2.8%) and $126.4 million at fair value (0.8%), so the loans are carried at 29.5% of cost (our arithmetic). The seven, with every loan line of each added up from the Schedule of Investments (our arithmetic; the totals equal the 10-Q table to the dollar):

How the list moved:

• Loparex is the new one. Its two second-lien loans ($112.0 million and $21.0 million of par) were carried at $97.7 million and $19.8 million at December 31, 2025 and at $5.6 million and $1.1 million at June 30, 2026. The unrealized change was minus $79.1 million in Q2 and minus $114.5 million in the half. The cost of the non-accrual list rose by $119.1 million between March and June (our arithmetic) almost entirely because of it.
• Walker Edison is off the list at a loss. It was a controlled affiliate on non-accrual at March 31 ($20.2 million at cost, $14.7 million at fair value, two loans); the 10-Q shows a realized loss of $62.4 million on it in the first half, $6.0 million of it in Q2. It is not among the seven at June 30.
• National Dentex is the one with a date. Its loans showed a May 2026 maturity in the March 10-Q and a July 2026 maturity in the June 10-Q, and are carried at 46% of cost. The 10-Q has no subsequent-event note about it; the September 30 10-Q will show what happened.
• Near the line. Loans OBDC’s adviser rates 4 or 5 on its 1-to-5 risk scale were $170.1 million at fair value (1.1% of the portfolio, our arithmetic) against $231.6 million at December 31; rating 3 was $1.08 billion (7.2%), down from $1.29 billion.

Our 36-BDC comparison of non-accruals puts OBDC’s 2.8% at cost in context with the other listed and non-traded BDCs. One caution on definitions: the 10-K and the 2025 10-Qs measure non-accruals against debt investments at cost (2.7% at December 31, 2025 and 3.2% at September 30, 2025), while the releases and the 2026 10-Qs use the whole portfolio (2.3% and 2.7%). Compare like with like.

Where the income comes from, PIK included

Second-quarter income statement against a year earlier (10-Q and release):

Investment income fell 17.4% in a year and interest expense fell 18.9% (our arithmetic), so NII fell 18.7%: the portfolio shrank (investments at fair value $14.96 billion against $16.47 billion at December 31) and yields slipped. Dividend income rose to $66.2 million a quarter, which the 10-Q attributes to “growth in our strategic equity investments”: the portfolio holds 9.5% in specialty finance equity (Wingspire Capital at $607.1 million, Fifth Season at $302.7 million) and 2.6% in joint ventures. Those are equity-like returns, not loan interest.

PIK (payment-in-kind, interest added to the loan instead of paid in cash) is measured three ways in the filing, and they do not match. The income statement shows $31.6 million of PIK interest in Q2, 7.9% of investment income (our arithmetic). The cash-flow statement shows $85.3 million of PIK interest and dividends in six months, 10.7% of the $798.1 million of investment income (our arithmetic). The MD&A says PIK income was 10.7% of income in Q2 and 11.2% in the half, up from 9.1% and 9.9%, which we could not reproduce from the statement lines. The 10-Q states that “the vast majority” of PIK investments “were structured as PIK from inception and not implemented as a result of credit underperformance.” OBDC’s PIK share is above the median in our BDC non-accrual and PIK table.

Software: 11.6% in one table, about 18% in another

OBDC’s industry table is the number quote pages repeat: Internet software and services 11.6% of fair value (11.1% at December 31, 2025), plus healthcare technology at 5.8%. The management discussion in the same 10-Q uses a different cut: “our software borrowers, which make up approximately 18% of the portfolio, continued to deliver strong revenue and EBITDA growth year-over-year,” and says the company believes “a limited portion of these investments are subject to risk of significant disruption.” In the March 10-Q the figure was 16%.

The gap is visible in the schedule: Cornerstone OnDemand sits under “Human resource support services” and its parent holding is named Sunshine Software Holdings; Pluralsight sits under “Education.” Cornerstone is the clearest example of why it matters. OBDC’s second-lien loan has $160.4 million of par, $154.6 million of cost and a $92.2 million fair value (57.5% of par, our arithmetic), and it holds a 10.50% Series A preferred stock with $79.6 million of cost and $39.8 million of fair value. Cornerstone was the second-largest unrealized decrease in Q2 (minus $26.8 million) and in the half (minus $84.3 million). We do not know whether other loans would count as software on an economic basis; the filing does not say.

Debt: what is due and what is available

At June 30, 2026 OBDC had $8.02 billion of debt principal against $7.03 billion of net assets: net leverage 1.11 times (target range 0.90 to 1.25), asset coverage 187% against a legal minimum of 150%, a weighted average cost of debt of 5.8% and $4.14 billion available under its facilities. The release puts the funding mix at 33.6% secured and 66.4% unsecured. Debt that comes due, from the 10-Q’s contractual-obligations table:

Since June 30 three things changed (our arithmetic where stated): the July notes were repaid at 100% on July 15, which removes $1.0 billion of the first row and leaves $825 million due by June 30, 2027; on September 2 OBDC closed a $398 million securitization (CLO XXVI) that matures in July 2038, backed by about $362.1 million of OBDC’s own loans, with OBDC buying all $106.15 million of the preferred shares; and, on June 25, the revolver was amended to a $4.0 billion size with availability to June 2030 and maturity in June 2031 (it was $4.025 billion, November 2028 and November 2029), while a $300 million secured facility was terminated. Moody’s upgraded OBDC to Baa2 in January 2026. Unfunded commitments to borrowers were $1.49 billion at June 30.

The fee lawsuit

The 10-Q reports a derivative action filed April 27, 2026 in the Southern District of New York on OBDC’s behalf, alleging the adviser received excessive advisory fees in breach of its duty under Section 36(b) of the Investment Company Act. The adviser “believes the claims asserted in the complaint are without merit and intends to vigorously defend against them.” On October 9, 2026 the company furnished the shareholder’s verified amended complaint (case 1:26-cv-03468-KPF, filed October 2) to the SEC on Form 40-33. These are allegations in a lawsuit, not findings. What the filings themselves show is the fee bill: management fee $252.0 million plus incentive fees $162.4 million, $414.4 million in 2025 (our arithmetic), and $118.0 million plus $68.6 million, $186.6 million, in the first half of 2026. The incentive fee takes 100% of pre-incentive NII above a 1.5% quarterly hurdle until the adviser has 17.5%, then 17.5% of the rest.

The complaint also alleges that OBDC’s shares traded at roughly a 22% discount to NAV at June 30, 2026, that the portfolio’s fair value was 0.985 of amortized cost, and that fees rose from $282.4 million in 2021 to $414.4 million. The 10-Q’s totals give 0.990 for fair value over amortized cost (our arithmetic: $14,955 million over $15,114 million); the complaint may measure it differently. The 22% is close to what OBDC’s own June buyback price implies (22.6% below $14.26, our arithmetic).

OBDC and the Blue Owl funds you may own

If you hold Blue Owl Credit Income Corp. (OCIC), Blue Owl Technology Income Corp. (OTIC) or OBDC II, three connections are in OBDC’s own filing:

• Shared loans through Credit SLF. This joint venture held $2.62 billion of investments at June 30, 2026, funded with $2.07 billion of debt. Its members: OBDC 64.4%, OCIC 14.8%, State Teachers Retirement System of Ohio 12.5%, Blue Owl Technology Finance 5.9%, OTIC 2.4% and OBDC II 0.04%.
• The same asset sale. In February 2026 OBDC sold part of 74 portfolio companies to pension and insurance buyers at 99.8% of par: $357.6 million of fair value in the 10-Q, against the $400 million announced on February 18. The release says the sale was “$1.4 billion of direct lending investments at book value across three Blue Owl BDCs”; the other two funds’ side is on their pages.
• The same adviser as OBDC II. Blue Owl Credit Advisors LLC is the investment adviser to both OBDC and OBDC II, according to the November 18, 2025 8-K.

One comparison a primary number supports: a non-traded BDC buys back shares at its NAV, up to a cap each quarter, and OBDC buys back at the market price. In March and June 2026 that price was about 77% of OBDC’s NAV (our arithmetic). A listed share can be sold any day; the price is the market’s and not the NAV. A non-traded share is repurchased at NAV, but only the share of requests the fund chooses to fill, which is in the fund pages above. This is not a ranking of the two.

What a holder can do with this

• If you own OBDC stock: the numbers that move next are in the third-quarter results on November 4, 2026 (call November 5): whether adjusted NII holds near $0.31 without the preferred realization, whether there is a supplemental dividend, what happened to the National Dentex loans that matured in July, and whether the non-accrual list grows again.
• Read two numbers together: NAV per share ($14.26) and non-accruals at cost versus fair value. A loan on non-accrual at 6% of cost, like Loparex, has already been written down; a loan at 46% of cost, like National Dentex, has more to go if it is worth less.
• If you own a non-traded Blue Owl fund: its non-accrual rate, PIK share and NAV are in its own 10-Q; see our non-traded BDC list and how the 36 BDCs compare.
• Check your own concentration. Blue Owl Capital Corporation cut its base dividend from $0.37 to $0.31 a share for the second quarter of 2026. If a large part of your income or your portfolio depends on this one payer, or on the Blue Owl funds together, a conversation with a qualified adviser about how it fits the rest of your holdings may be worth having.

This is analysis of public documents, not investment, legal or tax advice. We do not give price targets or say whether to buy, sell or hold.

FAQ

All figures are from Blue Owl Capital Corporation (SEC CIK 1655888) filings read on EDGAR on October 15, 2026: Form 10-K for 2025 (accession 0001655888-26-000010); Forms 10-Q for the quarters ended September 30, 2025 (0001655888-25-000024), March 31, 2026 (0001655888-26-000033) and June 30, 2026 (0001655888-26-000056, filed August 5, 2026); earnings releases attached to Forms 8-K for Q4 2025 (0001655888-26-000009), Q1 2026 (0001655888-26-000034) and Q2 2026 (0001655888-26-000055); Form 8-K of November 18, 2025 on the termination of the merger with OBDC II (0001628280-25-053061); Forms 8-K of June 30, 2026 on the credit facility (0001193125-26-290670) and of September 8, 2026 on the CLO XXVI securitization (0001193125-26-385210); the October 1, 2026 8-K on the results date (0001655888-26-000063); and the Form 40-33 of October 9, 2026 with the verified amended complaint (0001193125-26-419126). Our arithmetic is marked in the text, and each component is a row in the downloadable file. The latest filing on EDGAR at the time of writing was the Form 40-33. This is analysis of public documents, not investment, legal or tax advice.