Sixth Street Specialty Lending, Inc. (NYSE:TSLX) Raises Dividend to $0.42 Per Share

Sixth Street Specialty Lending, Inc. (NYSE:TSLX) declared a quarterly dividend on Tuesday, May 5th. Shareholders of record on Monday, June 15th will be given a dividend of 0.42 per share by the financial services provider on Tuesday, June 30th. This represents a c) annualized dividend and a yield of 9.4%. The ex-dividend date of this dividend is Monday, June 15th. This is a 4,100.0% increase from Sixth Street Specialty Lending’s previous quarterly dividend of $0.01.

Sixth Street Specialty Lending has decreased its dividend payment by an average of 0.0%annually over the last three years. Sixth Street Specialty Lending has a dividend payout ratio of 82.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Research analysts expect Sixth Street Specialty Lending to earn $1.97 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 93.4%.

Sixth Street Specialty Lending Price Performance

Sixth Street Specialty Lending stock traded down $1.81 during mid-day trading on Wednesday, hitting $17.79. 1,025,701 shares of the company were exchanged, compared to its average volume of 902,435. The company has a quick ratio of 2.83, a current ratio of 2.83 and a debt-to-equity ratio of 1.08. The business has a fifty day moving average of $18.35 and a 200 day moving average of $20.41. Sixth Street Specialty Lending has a 1-year low of $16.99 and a 1-year high of $25.17. The company has a market capitalization of $1.69 billion, a PE ratio of 9.84 and a beta of 0.65.

Sixth Street Specialty Lending (NYSE:TSLX) last released its quarterly earnings data on Tuesday, May 5th. The financial services provider reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.07). Sixth Street Specialty Lending had a return on equity of 12.71% and a net margin of 37.99%.The company had revenue of $93.40 million for the quarter, compared to analyst estimates of $103.14 million. During the same quarter in the prior year, the company earned $0.58 earnings per share. As a group, sell-side analysts expect that Sixth Street Specialty Lending will post 1.97 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research firms have issued reports on TSLX. Wells Fargo & Company dropped their price objective on Sixth Street Specialty Lending from $22.00 to $20.00 and set an “overweight” rating for the company in a research note on Tuesday, February 17th. Royal Bank Of Canada dropped their price objective on Sixth Street Specialty Lending from $24.00 to $22.00 and set an “outperform” rating for the company in a research note on Friday, February 20th. Weiss Ratings lowered Sixth Street Specialty Lending from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, February 20th. JPMorgan Chase & Co. dropped their price objective on Sixth Street Specialty Lending from $21.00 to $18.50 and set a “neutral” rating for the company in a research note on Friday, March 13th. Finally, Truist Financial dropped their price objective on Sixth Street Specialty Lending from $24.00 to $22.00 and set a “buy” rating for the company in a research note on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Sixth Street Specialty Lending currently has an average rating of “Moderate Buy” and an average target price of $21.64.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending Inc (NYSE: TSLX) is a closed-end, externally managed business development company that provides flexible debt financing solutions to middle-market companies. The fund primarily targets senior secured loans, unitranche facilities, mezzanine debt, second-lien financings and equity co-investment opportunities. By structuring tailored capital solutions, Sixth Street Specialty Lending seeks to support growth initiatives, recapitalizations and refinancings across a diverse set of industries, including technology, healthcare and business services.

As an affiliate of Sixth Street Partners, a global alternative investment firm, the company leverages the broader platform’s credit research, operational expertise and industry relationships.