TPG Specialty Lending, Inc. Stock News

The investment environment for BDCs remains solid, but there are some clear risks, which call for extra caution. One of the ways to protect current income streams from BDC allocations is to focus on high dividend coverage level picks. I have identified Top 3 BDCs, which carry the highest dividend coverage levels in the sector (on average around 150%).

Sixth Street Specialty Lending is a defensive BDC with strong base dividend coverage, even amid potential interest rate cuts. TSLX's portfolio is well-diversified, focusing on first-lien debt, with low non-accruals and reasonable industry exposure. Despite interest rate cuts, TSLX's dividend coverage remains robust, with room for special dividends.

Major BDCs are soon about to report their Q3, 2024 earnings. The current sector-wide challenges do not send encouraging signals. The Management team of SAR, which is one the BDCs that report 10-Q early, has indicated that the headwinds indeed persist.

NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX) (“TSLX” or “the Company") announced today that it will release its financial results for the third quarter ended September 30, 2024 on Tuesday, November 5, 2024, after the market closes. TSLX invites all interested persons to its webcast / conference call on Wednesday, November 6, 2024 at 8:30 a.m. Eastern Time to disc...

The Federal Reserve's 50 basis point rate cut impacts BDCs, which are sensitive to short-term rate changes, affecting their net investment income. BDCs thrive during rate hikes but face challenges with rate cuts, potentially leading to declining net investment income and increased non-accruals. I take a look at 10 leading BDCs and share my pick for the best one to own in the current environment.

Sixth Street Specialty Lending's net funded investment activity declined in 2Q24 due to higher repayments, but it comfortably out-earned its dividend with a 10% yield. The BDC maintains a diversified, high-quality First Lien-focused portfolio with low exposure to cyclical investments, making it a relatively secure investment. Despite a 23% premium to NAV, Sixth Street Specialty Lending's consis...

The NFL season starts Thursday night with the defending Super Bowl champion Kansas City Chiefs hosting the Baltimore Ravens.

I have been bullish on TSLX since early January this year, making the case for protected dividend income. While the price performance has been negative, the dividends have continued to come in, balancing the total return profile. Assessing the Q2, 2024 data, we can see that the thesis of TSLX being a defensive dividend pick is still there.