Oaktree Specialty Lending Corp. (NASDAQ:OCSL) Plans $0.03 Quarterly Dividend

Key Points

• Oaktree Specialty Lending declared a quarterly dividend of $0.03 per share, payable September 30 to shareholders of record on September 15. The dividend implies an annualized yield of approximately 1.0%.
• The company reported quarterly EPS of $0.34, missing analysts’ $0.36 estimate, while revenue of $69.15 million was slightly below expectations.
• Analyst sentiment remains cautious: OCSL has an average “Reduce” rating and an $11.83 target price, below its reported share price of $12.06.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Tuesday, September 15th will be given a dividend of 0.03 per share by the credit services provider on Wednesday, September 30th. This represents a c) dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Tuesday, September 15th.

Oaktree Specialty Lending has raised its dividend payment by an average of 0.1%per year over the last three years. Oaktree Specialty Lending has a dividend payout ratio of 51.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Oaktree Specialty Lending to earn $1.38 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 87.0%.

Oaktree Specialty Lending Stock Down 0.6%

Shares of Oaktree Specialty Lending stock traded down $0.07 on Wednesday, reaching $12.06. The stock had a trading volume of 935,699 shares, compared to its average volume of 779,128. The company has a quick ratio of 0.17, a current ratio of 0.17 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $1.06 billion, a P/E ratio of 21.16 and a beta of 0.49. The company has a 50 day moving average price of $11.91 and a 200 day moving average price of $11.95. Oaktree Specialty Lending has a 1 year low of $10.63 and a 1 year high of $14.31.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last posted its earnings results on Tuesday, August 4th. The credit services provider reported $0.34 EPS for the quarter, missing analysts' consensus estimates of $0.36 by ($0.02). Oaktree Specialty Lending had a net margin of 16.66% and a return on equity of 9.56%. The firm had revenue of $69.15 million for the quarter, compared to analysts' expectations of $69.40 million. As a group, equities research analysts forecast that Oaktree Specialty Lending will post 1.5 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have recently weighed in on OCSL shares. Oppenheimer set a $13.00 price objective on Oaktree Specialty Lending in a research report on Wednesday, May 6th. Weiss Ratings lowered Oaktree Specialty Lending from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, July 24th. Finally, Wall Street Zen upgraded shares of Oaktree Specialty Lending from a "sell" rating to a "hold" rating in a report on Saturday. Four investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $11.83.

About Oaktree Specialty Lending

Oaktree Specialty Lending Corporation NASDAQ: OCSL is a closed-end, externally managed specialty finance company structured as a business development company (BDC). Launched in 2014, Oaktree Specialty Lending provides customized debt solutions to U.S. middle-market companies, with a focus on senior secured loans, second-lien financings, mezzanine debt and select equity co-investments. The company’s investment strategy centers on floating-rate instruments designed to offer downside protection and income potential in varying interest rate environments.

The firm’s portfolio spans a diverse array of industries, including healthcare, technology, energy, business services and consumer products.

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