Sixth Street Specialty Lending: Strong Dividend Coverage But Trades At A Premium

  • TSLX offers a strong 8.9% dividend yield with robust coverage, making it appealing for income-focused investors despite sector headwinds. The portfolio is well-diversified, with 93% in first lien senior secured loans and 97% floating rate, benefiting from higher interest rates. NAV has slightly declined, and new investment activity is slow, limiting near-term growth potential and justifying a hold rating at current premium valuations.