I'm Buying this 9.5% Yielding Stock with Excellent Growth

After watching and examining a stock for quite a few months I recently opened a small position in another business development company. It’s one that up to this point has done pretty well and I’m honestly not sure why I’ve never covered it on this channel before. It currently offers a dividend yield of over 9 and a half percent and has a really solid track record of dividend payments. It’s five year regular dividend growth rate is over 14% and on top of that they pay a lot of special dividends which is something I’ve definitely started appreciated more. Even better though is the fact that this company has an impressive amount of share price growth for a BDC which is another positive aspect of it.

The company we’re looking at today is Sixth Street Specialty Lending, ticker TSLX. They’re a specialty finance company that provides senior secured loans, unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities. They invest in wide range of sectors including business services, software & technology, healthcare, energy and industrials. TSLX invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. According to their website they can provide up to $500 million dollars in financing solutions to their partners and offer long-term flexible solutions.
 
Sixth Street Specialty Lending is a business development company that was launched in 2010 and is managed by Sixth Street Partners. They’re a global investment firm founded in 2009 and currently have more than $60 billion dollars in assets under management. Today TSLX has a market cap of $1.4 billion dollars, which makes them considerably smaller than the largest BDC in the industry, Ares Capital, at roughly $10 billion dollars. But as of the making of this video they’re currently the tenth largest BDC in the sector. Since their IPO this company’s originated roughly 22 billion dollars of investments and currently have $2.6 billion worth of assets.

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