Dividend stocks can be an excellent source of passive income for investors, but not all dividend-paying companies are created equal.

Owl Rock Capital Corp. (NYSE: ORCC) is a dividend stock that yields investors a dividend of 10.2%. High-yield dividend stocks like this can be appealing because of their lofty returns, but they can come with certain risks. Here's why Owl Rock pays such a high dividend, and what you need to know before deciding if it's the right stock for you.

Owl Rock is a business development corporation (BDC) that lends to middle-market companies in the U.S. A BDC is simply a company that makes loans or buys equity in private businesses that other bank lenders may find too risky.

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Source Fool.com