This Ultra-High-Yield Dividend Stock is Up 21% in the Past Month -- Is It a Buy?
Rising interest rates have wreaked havoc on markets this year, impacting companies that use debt to fund their business. Owl Rock Capital Corporation (NYSE: ORCC) is a top lender to middle-market companies, with a stellar dividend yield of nearly 10%. But its stock has been on a volatile ride over the past few months.
Companies like Owl Rock Capital deliver high yields but come with some risks due to their sensitivity to interest rates and macroeconomic events. If you're searching for a high-dividend yield, then the stock is quite appealing -- but there is something you should know before buying.
Owl Rock Capital Corporation provides loans to middle-market companies. It is a business development corporation (BDC), meaning it provides loans and buys equity in businesses in the United States that banks may consider too risky. BDCs have similar tax rules to real estate investment trusts (REITs), which require them to pay out 90% of their earnings as dividends to shareholders.
Source Fool.com
