Oaktree Specialty Lending: Yielding And Re-Rating
Summary
- Oaktree Specialty Lending is a mid-sized BDC offering an 8.4% dividend yield and a promising outlook with leverage reasonable and the dividend more than covered.
- The company is in the middle of a transition to higher quality and higher returns since Oaktree took the company over in late 2017 – a re-rating is underway.
- We chose Oaktree as our first BDC investment due to a combination of attractive yield, dividend sustainability, strong new management, and valuation.
- As a reminder, consider the many risks and potential volatility before investing in Business Development Companies (BDCs).
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 (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
This article should not be considered as investment advice. While we hope you find this article informative, please do your own research - or speak to a financial adviser - before making any investment decisions.
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.