OCSL Stock Recent News

Oaktree Specialty Lending operates as a business development company that holds a focus on investing in middle market companies. Reduction in management fees to 1% is expected to increase net investment income per share by $0.15 annually. However, I believe this was done out of necessity to offset underperformance. Despite strong dividend growth history, caution is advised due to low coverage rate and lack of NAV growth, making OCSL a hold.

LOS ANGELES, CA, July 01, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending” or the “Company”) today announced that it will report its financial results for the third fiscal quarter ended June 30, 2024 before the opening of the Nasdaq Global Select Market on Thursday, August 1, 2024. Management will host a conference call to discuss the results on the same day at 11:00 a.m.

Buying high-yield dividend stocks is one of the most vital investing strategies for those looking for stable long-term portfolio growth and a constant income source. These stocks provide large dividend payments, which lead to consistent cash flow.

Oaktree Specialty Lending Corporation's share price has continued to underperform the BDC index after my updated bull thesis earlier this year. On the surface, such flat performance might seem justified. Yet, if we peel back the onion a bit, we will notice that the underlying dynamics remain strong.

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.

Oaktree Specialty Lending Corporation had another disappointing quarter, but still managed a positive total NAV return. Oaktree Specialty Lending focuses on secured loans, with overweights in the software and healthcare sectors. The company reduced its base management fee and extended its merger-related fee waiver, potentially due to pressure from recent BDC IPOs and its own middling performance.

Oaktree Specialty Lending Corporation showed portfolio weakness in 2Q24, resulting in net realized losses and a decline in net asset value. The dividend pay-out ratio is dangerously close to 100%, raising the possibility of a dividend cut in 2024. The BDC's credit issues and non-accrual trend could lead to further trouble if not resolved in the short term.

11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time LOS ANGELES, CA, April 01, 2024 (GLOBE NEWSWIRE) -- Oaktree Specialty Lending Corporation (NASDAQ:OCSL) (“Oaktree Specialty Lending” or the “Company”) today announced that it will report its financial results for the second fiscal quarter ended March 31, 2024 before the opening of the Nasdaq Global Select Market on Tuesday, April 30, 2024.

Income stocks have been overshadowed by growth stocks, but it's the former that pays the bills and can reduce portfolio volatility. Oaktree Specialty Lending is a high-yield investment opportunity with a diverse portfolio and exposure to attractive industries. OCSL's recent drop in price presents a good opportunity for income investors, as it trades at about NAV and carries a strong balance sheet.

Oaktree Specialty Lending has seen a significant decline in share price, but total return since inception is around 170% due to high distributions. OCSL specializes in middle market financing and has diverse exposure to various sectors within their debt portfolio. The current dividend yield for OCSL is 11.4%, with a quarterly dividend of $0.55/share.