Sixth Street Specialty Lending, Inc. (NYSE:TSLX) Declares Quarterly Dividend of $0.42

Key Points

• Sixth Street Specialty Lending declared a quarterly dividend of $0.42 per share, payable December 31 to shareholders of record December 15. The annualized dividend is $1.68, representing a 9.4% yield.
• The dividend is currently covered by earnings, with a 75% payout ratio. Analysts expect next year’s earnings to cover the annual dividend, though the projected payout ratio would rise to 91.3%.
• Quarterly EPS of $0.44 matched analyst expectations, while revenue of $98.96 million exceeded the $97.59 million consensus estimate.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) declared a quarterly dividend on Tuesday, November 3rd. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.42 per share by the financial services provider on Thursday, December 31st. This represents a $1.68 annualized dividend and a dividend yield of 9.4%. The ex-dividend date is Tuesday, December 15th.

Sixth Street Specialty Lending has a payout ratio of 75.0% meaning its dividend is sufficiently covered by earnings. Analysts expect Sixth Street Specialty Lending to earn $1.84 per share next year, which means the company should continue to be able to cover its $1.68 annual dividend with an expected future payout ratio of 91.3%.

Sixth Street Specialty Lending Stock Performance

NYSE TSLX opened at $17.91 on Wednesday. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of 18.85 and a beta of 0.61. The company has a quick ratio of 9.83, a current ratio of 9.83 and a debt-to-equity ratio of 1.24. The business has a 50-day moving average price of $17.83 and a 200-day moving average price of $18.22. Sixth Street Specialty Lending has a twelve month low of $16.04 and a twelve month high of $22.84.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last issued its earnings results on Tuesday, November 3rd. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.44. Sixth Street Specialty Lending had a return on equity of 11.33% and a net margin of 21.79%. The company had revenue of $98.96 million for the quarter, compared to the consensus estimate of $97.59 million. As a group, equities research analysts predict that Sixth Street Specialty Lending will post 1.74 EPS for the current fiscal year.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc is a business development company (BDC) that provides financing to middle-market companies. The company primarily invests in privately negotiated debt and equity investments, with a focus on supporting businesses that may have limited access to traditional bank financing.

Its investment portfolio generally includes first-lien and second-lien loans, unitranche financing, mezzanine debt, and related equity investments. Sixth Street Specialty Lending seeks to generate income through interest payments and other investment returns while providing customized financing solutions for acquisitions, recapitalizations, refinancings, growth initiatives, and other corporate purposes.

The company was formed in 2011 and is externally managed by an affiliate of Sixth Street, an investment firm focused on credit and other asset classes.

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