Oaktree Specialty Lending Corp. (NASDAQ:OCSL) Plans Quarterly Dividend of $0.30

Key Points

• Oaktree Specialty Lending declared a $0.30 quarterly dividend (ex‑dividend/record date June 15, payable June 30), representing an annualized yield of 9.9%.
• While OCSL reported $0.38 EPS for the quarter (beating estimates), revenue missed and analysts forecast $1.48 EPS next year versus a $1.60 annual dividend, implying a projected payout ratio of about 108.1% and a risk that the dividend may not be fully covered by future earnings.

Oaktree Specialty Lending Corp. (NASDAQ:OCSL - Get Free Report) declared a quarterly dividend on Tuesday, May 5th. Investors of record on Monday, June 15th will be given a dividend of 0.30 per share by the credit services provider on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 9.9%. The ex-dividend date of this dividend is Monday, June 15th.

Oaktree Specialty Lending has increased its dividend by an average of 0.1%annually over the last three years. Oaktree Specialty Lending has a dividend payout ratio of 69.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Oaktree Specialty Lending to earn $1.48 per share next year, which means the company may not be able to cover its $1.60 annual dividend with an expected future payout ratio of 108.1%.

Oaktree Specialty Lending Stock Performance

NASDAQ:OCSL traded down $0.74 on Tuesday, reaching $12.16. 2,108,746 shares of the company's stock were exchanged, compared to its average volume of 917,865. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.16 and a quick ratio of 0.16. The firm has a market cap of $1.07 billion, a price-to-earnings ratio of 33.78 and a beta of 0.52. Oaktree Specialty Lending has a 52 week low of $10.63 and a 52 week high of $14.77. The stock has a fifty day simple moving average of $11.73 and a 200-day simple moving average of $12.61.

Oaktree Specialty Lending (NASDAQ:OCSL - Get Free Report) last issued its earnings results on Tuesday, May 5th. The credit services provider reported $0.38 earnings per share for the quarter, topping analysts' consensus estimates of $0.36 by $0.02. Oaktree Specialty Lending had a net margin of 10.58% and a return on equity of 9.75%. The firm had revenue of $69.74 million during the quarter, compared to analyst estimates of $74.35 million. During the same quarter last year, the business earned $0.45 earnings per share. As a group, sell-side analysts predict that Oaktree Specialty Lending will post 1.49 earnings per share for the current year.

Insider Activity at Oaktree Specialty Lending

In other Oaktree Specialty Lending news, Director Phyllis R. Caldwell bought 2,500 shares of the company's stock in a transaction dated Monday, March 16th. The shares were purchased at an average price of $10.77 per share, for a total transaction of $26,925.00. Following the acquisition, the director owned 23,500 shares in the company, valued at approximately $253,095. This represents a 11.90% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On Oaktree Specialty Lending

Large investors have recently modified their holdings of the stock. Bruni J V & Co. Co. raised its position in Oaktree Specialty Lending by 12.4% in the 3rd quarter. Bruni J V & Co. Co. now owns 2,487,019 shares of the credit services provider's stock worth $32,456,000 after buying an additional 274,667 shares during the last quarter. Private Management Group Inc. increased its position in shares of Oaktree Specialty Lending by 25.2% during the 3rd quarter. Private Management Group Inc. now owns 3,014,163 shares of the credit services provider's stock valued at $39,335,000 after purchasing an additional 607,493 shares during the last quarter. HighTower Advisors LLC increased its position in shares of Oaktree Specialty Lending by 102.6% during the 3rd quarter. HighTower Advisors LLC now owns 267,909 shares of the credit services provider's stock valued at $3,496,000 after purchasing an additional 135,662 shares during the last quarter. Van ECK Associates Corp increased its position in shares of Oaktree Specialty Lending by 6.6% during the 3rd quarter. Van ECK Associates Corp now owns 2,173,257 shares of the credit services provider's stock valued at $28,361,000 after purchasing an additional 134,557 shares during the last quarter. Finally, Melia Wealth LLC increased its position in shares of Oaktree Specialty Lending by 22.8% during the 3rd quarter. Melia Wealth LLC now owns 1,215,842 shares of the credit services provider's stock valued at $15,867,000 after purchasing an additional 225,384 shares during the last quarter. Hedge funds and other institutional investors own 36.79% of the company's stock.

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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