Covered after the cut — the cut is the story. A 10.49% yield on the regular $0.30 quarterly dividend is covered by adjusted net investment income — $0.37 per share in the June 2026 quarter against the $0.30 base, about an 81% payout; the $0.03 supplemental takes the total to $0.33 a quarter, or 11.54%, and is not guaranteed. But the base was cut 25% in 2026 from $0.40, NAV per share of $15.70 is flat quarter over quarter yet down from $16.30 at December 31, 2025, and adjusted NII has slid from about $0.54 a quarter in 2024. The House scores Oaktree on the regular 10.49% only.
Key risk: Private-credit repricing continuing — software-loan markdowns already drove NAV down from $16.30, and if NII keeps sliding with base rates, the rebased $0.30 dividend faces a second cut.
Changes if: Adjusted net investment income stabilizes or grows, and NAV rises from $15.70. Supplementals never count toward this verdict either way.
- ✓Coverage check: June-quarter adjusted net investment income of $0.37 a share covers the $0.30 base dividend — about 81% paid out, and the $0.33 total including the supplemental is also covered. The supplemental is declared separately and is not part of the base promise.
- !Yield check: Anyone quoting only the 11.54% figure is selling. The House scores Oaktree on the regular 10.49% — $0.30/qtr × 4 at the $11.44 close on Oct. 23, 2026.
- !NAV check: NAV per share of $15.70 at June 30, 2026, flat against $15.69 at March 31 but down from $16.30 at December 31, 2025; nonaccruals improved to 2.6% of the debt portfolio at fair value.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.