Sixth Street Specialty Lending, Inc. (TSLX) — Dividend Yield, NAV & Valuation Analysis
TSLX · NYSE
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Overview
Sixth Street Specialty Lending is a BDC focused on providing senior secured loans to middle-market companies. TSLX is externally managed by Sixth Street Partners, a global investment firm with over $75 billion in assets under management. The company emphasizes first lien senior secured debt and maintains a defensive portfolio orientation. TSLX has delivered consistently strong risk-adjusted returns since its IPO.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 14.1% |
| 3-Year Total Return | 35.2% |
| 5-Year Total Return | 53.5% |
| Expense Ratio | 8% |
| Leverage Ratio | 1.18x |
| Portfolio Companies | 85 |
| Total Assets | $3.8B |
Discount / Premium to NAV
| Stock Price | $21.2 |
| NAV per Share | $20.65 |
| Premium / (Discount) to NAV | 2.7% |
| Implied per-share NAV gap | $-0.55 |
The premium / discount to NAV compares the current stock price to the per-share net asset value of Sixth Street Specialty Lending, Inc.'s investment portfolio. A negative reading (a discount) means the market is pricing TSLX below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Sixth Street Specialty Lending, Inc. currently trades at a 2.7% premium to NAV.
Investment Strategy
Sixth Street Specialty Lending, Inc. focuses on senior secured loans, first lien loans in the healthcare, technology, business services, consumer sectors. The company targets middle-market companies and maintains a portfolio of 85 investments totaling $3.8B in assets.
Management
CEO: Joshua J. Peck | Employees: 35
Suitability
TSLX is suitable for income-focused investors seeking quarterly dividend income with a 9.5% yield. The BDC's focus on senior secured loans provides defensive portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.