Oaktree Capital Group
Dividend Yield: 10.6%
Part REIT, part mutual fund, part business development company, part investment manager, Oaktree Capital Group, LLC (OAK) is nothing like any of the other strong-dividend names under the microscope. Then again, with a yield of 10.6%, income investors probably aren’t going to care about the structure of the vehicle. What matters is that the formula works.
Better still, stronger dividends may be on the way.
It’s a tad difficult to explain, but Oaktree Capital Group manages closed-end funds that reap performance bonuses for the company. Those funds are collectively up about 20% over the past year or so, but until those funds’ assets are liquidated, much of that strong performance and incentive potential won’t be collected and passed along to shareholders.
It’s in the queue, however, and after nearly doubling the second quarter’s revenue as well as income, the company has proven it knows how to pick opportunities.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.