Sixth Street Specialty Lending, Inc. Declares Dividend of $0.05 (NYSE:TSLX)

Key Points

• Sixth Street Specialty Lending, Inc. announced a dividend of $0.05 per share, with a dividend yield of 864.0%, payable on September 19th to investors of record as of September 1st.
• The company's current payout ratio is 82.1%, indicating that while the dividend is currently covered by earnings, future earnings declines may jeopardize this coverage.
• Sixth Street Specialty Lending reported earnings of $0.56 per share for the last quarter, exceeding analysts' predictions, and had a revenue of $115 million compared to expected revenues of $110.42 million.

Sixth Street Specialty Lending, Inc. (NYSE:TSLX - Get Free Report) declared a dividend on Saturday, August 23rd, investing.com reports. Investors of record on Monday, September 1st will be given a dividend of 0.05 per share by the financial services provider on Friday, September 19th. This represents a yield of 864.0%. The ex-dividend date is Friday, August 29th.

Sixth Street Specialty Lending has a payout ratio of 82.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Equities research analysts expect Sixth Street Specialty Lending to earn $2.16 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 85.2%.

Sixth Street Specialty Lending Stock Down 0.1%

Shares of NYSE:TSLX traded down $0.03 on Monday, hitting $24.06. 496,148 shares of the company's stock were exchanged, compared to its average volume of 447,774. Sixth Street Specialty Lending has a 1-year low of $18.58 and a 1-year high of $25.17. The company has a debt-to-equity ratio of 1.07, a quick ratio of 3.79 and a current ratio of 3.79. The company has a market capitalization of $2.27 billion, a PE ratio of 11.97 and a beta of 0.84. The firm's 50-day moving average is $23.99 and its 200 day moving average is $22.72.

Sixth Street Specialty Lending (NYSE:TSLX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The financial services provider reported $0.56 EPS for the quarter, beating the consensus estimate of $0.53 by $0.03. The firm had revenue of $115.00 million during the quarter, compared to the consensus estimate of $110.42 million. Sixth Street Specialty Lending had a return on equity of 13.47% and a net margin of 39.56%.During the same period in the prior year, the business earned $0.58 EPS. Sell-side analysts predict that Sixth Street Specialty Lending will post 2.19 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have weighed in on TSLX shares. Raymond James Financial reduced their price target on Sixth Street Specialty Lending from $24.00 to $23.00 and set an "outperform" rating on the stock in a research note on Friday, May 2nd. Wells Fargo & Company raised their price objective on Sixth Street Specialty Lending from $21.00 to $24.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. B. Riley began coverage on Sixth Street Specialty Lending in a research note on Tuesday, May 13th. They set a "buy" rating and a $23.00 target price for the company. Finally, JMP Securities raised their target price on Sixth Street Specialty Lending from $24.00 to $25.00 and gave the company a "market outperform" rating in a research note on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Sixth Street Specialty Lending has a consensus rating of "Buy" and an average price target of $23.28.

About Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc NYSE: TSLX is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing.