NCDL vs TSLX: Which BDC is the Better Dividend Buy?
A side-by-side comparison of Nuveen Churchill Direct Lending Corp. (NCDL) and Sixth Street Specialty Lending, Inc. (TSLX) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
Ready to Trade NCDL or TSLX?
Public Disclosure: We maintain material affiliate partnerships with the trading platforms listed below and may receive compensation if you open an account through our tracking routes.
Compare BDC dividend yields side-by-side, then open a brokerage account that supports fractional shares and real-time distribution tracking.
NCDL vs TSLX: Key Metrics Head-to-Head
| Metric | NCDL | TSLX | Edge |
|---|---|---|---|
| Dividend Yield | 13.24% | 10.84% | NCDL |
| Premium / Discount to NAV | -27.49% | -15.54% | TSLX |
| Market Capitalization | $0.51B | $2.4B | TSLX |
| Trailing Stock Price | $12.69 | $17.44 | — |
| Net Asset Value (NAV) | $17.5 | $20.65 | — |
| Price vs NAV (Valuation) | Discount | Discount | TSLX |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.2x | 1.18x | TSLX |
About NCDL — Nuveen Churchill Direct Lending Corp.
Nuveen Churchill Direct Lending Corp. is an externally managed BDC structured as a joint venture between Nuveen and Churchill Asset Management. NCDL provides senior secured and unitranche loans to U.S. middle-market companies backed by private equity sponsors. The portfolio comprises predominantly floating-rate first lien loans sourced through Churchills direct origination network, targeting borrowers with EBITDA between $5 million and $50 million.
About TSLX — Sixth Street Specialty Lending, Inc.
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.
How to Choose Between NCDL and TSLX
When comparing two Business Development Companies, the right choice depends on your income objective:
- Dividend yield matters most for immediate income — the higher yielder wins on cash flow, but make sure it's covered by investment income.
- NAV premium/discount matters for valuation — a discount to NAV implies you're buying assets below their accounting value, a premium implies the market expects above-average growth.
- Market cap reflects liquidity and scale — larger BDCs typically have lower borrowing costs and better portfolio diversification.
- Leverage cuts both ways — it amplifies dividend yield but increases sensitivity to credit defaults and interest rate moves.
Both NCDL and TSLX are Regulated Investment Company (RIC)-structured BDCs required to distribute at least 90% of taxable income to shareholders, which is what produces their above-average dividend yields. Use the comparison table above as a starting point, then read each full profile before making an investment decision.
Affiliate Disclosure: BusinessDevelopmentCompanies.com participates in affiliate marketing programs. We may earn a commission or referral fee when visitors click links to institutional partner platforms like eToro or Interactive Brokers. This financial support enables us to maintain real-time programmatic valuation data across our platform. Links to brokerages on this page carry the rel="sponsored nofollow noopener" attribute.
Not Investment Advice: This comparison is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor. Read our full Editorial Policy and Terms of Service.