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Sixth Street Specialty Lending cut its dividend by 10.6% quarter-over-quarter to $0.42, restoring dividend coverage above 100% in Q2. TSLX maintains a high-quality portfolio, with a 1.3% fair value non-accrual rate and a portfolio value of $3.3 billion, primarily first liens. The stock trades at a premium (1.16x NAV), reflecting investor confidence in its asset quality and dividend sustainability after the cut.

Many BDCs have cut their dividends in the past 12-month period. However, for many (including those who have already cut), some form of damage is still in front of them. In my view, investing in BDCs for truly durable income is almost impossible.

Sixth Street Specialty Lending NYSE: TSLX reported second-quarter net investment income and net income of $0.43 per share, while net asset value remained stable at $16.24 per share. The business development company said operating earnings exceeded its recently established base quarterly dividend of $0.42 per share.

Sixth Street Specialty Lending, Inc. (TSLX) Q2 2026 Earnings Call Transcript

Sixth Street (TSLX) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.56 per share a year ago.