Sixth Street Specialty Lending, Inc. (NYSE: TSLX) Increases Dividend to $0.07 Per Share

Sixth Street Specialty Lending, Inc. (NYSE:TSLX) has announced an increase in its quarterly dividend, as reported on Thursday, February 13th. Shareholders listed on the record by Friday, March 14th, will receive a dividend payment of $0.07 per share. This dividend payment is expected to be distributed on Monday, March 31st. Annually, this reflects a total of $0.28 per share, translating to a dividend yield of 1.22%. The ex-dividend date for this upcoming payment falls on Friday, March 14th. This increase signifies a rise from the company’s previous quarterly dividend of $0.05 per share.

Currently, Sixth Street Specialty Lending maintains a payout ratio of 82.1%. This indicates that the company is able to cover its dividends from its earnings. However, concerns arise regarding future sustainability if the company’s earnings experience a decline. Analysts predict earnings per share (EPS) for the next fiscal year to be around $2.22, suggesting that the anticipated annual dividend of $1.84 can still be covered, albeit with an expected payout ratio slightly increasing to 82.9%.

Stock Performance Overview

On the trading floor, TSLX shares rose by 2.2%, reaching a price of $22.97. On that trading day, the volume of shares exchanged was 730,751, notably higher than the average trading volume of 296,213 shares. The company’s fifty-day moving average stands at $21.54, while its 200-day moving average is at $21.00. With a market capitalization of $2.14 billion, the firm currently boasts a price-to-earnings (P/E) ratio of 11.15 and a beta value of 1.06. Additionally, the stock has fluctuated between a low of $19.50 and a high of $23.15 over the past year. The company also shows sound liquidity with a quick ratio and current ratio both positioned at 2.50. Furthermore, the debt-to-equity ratio is reported at 1.17.

The latest quarterly earnings reported on February 13th reflected an EPS of $0.61, exceeding analysts' expectations of $0.57 by $0.04. The financial outcomes reveal a robust net margin of 39.05% and a return on equity of 13.55%. Projections for the current fiscal year estimate an EPS of around $2.31 for Sixth Street Specialty Lending.

Market Analysts on Sixth Street Specialty Lending

Market analysts have been providing insights into Sixth Street Specialty Lending (TSLX) stock recently. On November 7th, Keefe, Bruyette & Woods reduced their price target from $23.00 to $21.50 while still rating the stock as an "outperform." The Royal Bank of Canada reiterated an "outperform" rating and set a price target of $23.00 on November 12th. Wells Fargo & Company raised their price target from $21.00 to $23.00 in a positive report released on January 29th. Conversely, LADENBURG THALM/SH SH downgraded the company from "buy" to "neutral" in their report last Friday. Currently, the consensus rating for Sixth Street Specialty Lending is categorized as a "Moderate Buy" with an average target price of $22.33, with one analyst suggesting a hold and five promoting a buy rating.

Company Overview

Sixth Street Specialty Lending, Inc. operates as a business development company. TSLX specializes in providing various lending solutions, including senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities, alongside structured products. The focus remains on co-investments that support growth initiatives, acquisitions, product or market expansion, restructuring efforts, recapitalizations, and refinancing strategies.

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