BXSL Stock Recent News

The threat of higher inflation and interest rates for longer has sent the market into turmoil. However, high yield investors have nothing to fear from this development. We share a 7%-yielding portfolio that is well-positioned to weather the current macro environment.

We take a look at the action in business development companies through the second week of December and highlight some of the key themes we are watching. BDCs were flat this week with CSWC and PSEC underperforming; average valuations have risen slightly above the 5-year average. Continuing themes in the BDC sector include performance persistence and valuation compression.

AI stocks have dominated the markets over the past few years. However, there are a few other sectors that have also shined over the past few years. I share two high-flying big dividend sectors that, I think, will continue to outperform in 2025.

The financial outlook for many BDCs is not promising. Already lower base rates will continue to depress results in Q4 reports. The trajectory for SOFR is not great either.

Big dividend stocks are on a big holiday sale this Christmas season. Even in some of the most in-favor sectors of the high-yield space, bargains can still be found. I share some well-covered 11-14% dividend yields that can be found on the bargain rack.

BXSL is a dominant BDC that focuses on strategic expansion done safely while maintaining a robust and versatile company portfolio. Its experienced leadership team is disciplined and confident. Integration within the Blackstone ecosystem demonstrably enhances BXSL's ability to create new commitments and funding.

We take a look at the action in business development companies through the first week of December and highlight some of the key themes we are watching. BDCs experienced a slight decline this week, but are up nearly 10% year-to-date. Wrapping up Q3 earnings: WHF had a -2% total NAV return with rising non-accruals, while BXSL posted a strong 3.2% total NAV return.

Blackstone Secured Lending delivered a 3.2% total NAV return in Q3, outperforming the sector median. BXSL trades at a 17% premium to book value and offers a 9.7% dividend yield, with net income yield on price at 11.5%. The company's portfolio quality remains high with low non-accruals and strong diversification, though the net yield margin has fallen due to tighter spreads and higher interest expense.

The market rarely offers 10%+ yielding common equities that have a low risk of facing a cut. However, once in a while it offers up compelling opportunities like this. I share two 10%+ yields that are well-covered, and the market appears to be sleeping on them.

BDCs offer attractive opportunities for income investors to enhance their portfolio yields. Yet, since the yields are so enticing, the chances are high for getting caught in value traps. In the article I elaborate on two BDCs that are very close to cutting their dividends with a high probability of making the announcements in 2025.