A Rare 8% Yield BDC Offering Dividend Growth, Equity Upside: Oaktree Specialty Lending

Blue Harbinger
Investing Group Leader

Summary

  • BDC - Oaktree Specialty Lending Corporation - offers a rare combination of growing dividends and equity upside.
  • Thanks to its strong management team, strong balance sheet liquidity and strong investment portfolio, we believe Oaktree Specialty Lending Corporation can outperform some of the top BDCs over the long term.
  • In this report, we review the health of the business, the highly-experienced management team, the balance sheet, liquidity, dividend safety, valuation and risks. We conclude with our opinion on investing.
  • This idea was discussed in more depth with members of my private investing community, Big Dividends PLUS. Learn More »

Money and investment concept

turk_stock_photographer/iStock via Getty Images

Oaktree Specialty LendingWhile other business development companies ("BDCs") were cutting their dividends as a result of the pandemic, Oaktree Specialty Lending Corp (NASDAQ:OCSL) not only maintained theirs, but has also significantly increased it in each of the past

We currently own shares of OCSL (within our 39-stock Blue Harbinger Income Equity portfolio). And while we believe OCSL is highly attractive for income-focused value investors, it was not quite attractive enough to make it into our latest members-only report:

Top 8 Big-Dividend REITs, BDCs, CEFs and MLPs.

This report (along with our complete Income Equity portfolio) is available to members of our marketplace service, Big Dividends PLUS.

*Note: we are currently offering a rare 20% Off Discount on all new memberships.

This article was written by

Blue Harbinger
20.73K Followers

Mark D. Hines | Private Investor. Former allocator and buyside PM. Now building Blue Harbinger Research (top ideas plus the “High Income NOW” and “Disciplined Growth” portfolios) and Herrick Lake Investments (helping you make informed decisions). University of Chicago Booth MBA, BS in Finance from the University of Illinois at Urbana-Champaign.

x.com/hinesmarkd | linkedin.com/in/hinesmarkd

Analyst’s Disclosure:I/we have a beneficial long position in the shares of OCSL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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