Oaktree Specialty Lending: A Solid 11% Yield To Boost Your Income

The Asian Investor
29.11K Followers

Summary

  • Oaktree Specialty Lending's dividend coverage metrics weakened in FQ2, but the company plans to lower its management fee to improve coverage.
  • The BDC's loan quality has improved Q/Q. Originations remained strong and the company fully supported its $0.55 per-share dividend with NII.
  • Base management fee reduction is set to boost NII by $0.03-0.04 per-share quarterly.
  • Shares of Oaktree Specialty Lending remain a strong buy for dividend investors.

Yield Road Sign Post Over a Blue Sky

ryasick

Oaktree Specialty Lending (NASDAQ:OCSL) suffered weakness in its dividend coverage metrics for the quarter ending March. While the decline in the dividend coverage was not great, the BDC announced that it was lowering its management fee which is set

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of OCSL, ARCC 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.

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