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Sixth Street Specialty Lending Inc (TSLX) is a specialty finance (business development) company focused on providing flexible, fully committed financing solutions to middle-market companies located in the United States of America.

It partners with companies across a variety of industries and excels at providing creative solutions to companies with complex business models that may have limited access to capital. The company seeks to generate current income in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine and unsecured loans and investments in corporate bonds and equity securities.

The company was founded in 2010.

It has paid quarterly dividends since April, 2015, and is headquartered in Dallas, TX.

Three key data points gauge

Sixth Street Specialty Lending Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

TSLX Price

Over the past year, Sixth Street's share price rose about 14.5% from $19.00 to $21.75 as of Wednesday’s market close.

If Sixth Street trades in the range of $17 to $25 this next year, its recent $21.75 share price might rise to $22.70 by next year. Of course, TSLX’s price could drop about the same $0.95 estimated amount, or more.

My annual upside estimate of $0.95 however, is in line with the median of one year target estimates from eleven analysts tracking Sixth Street for brokers.

TSLX Dividend

Sixth Street Specialty Lending has paid variable quarterly dividends since April, 2015. TSLX’s recent Q dividend of $0.46 was declared February 15th to shareholders of record March 14th. The payout will be made March 28th.

A forward-looking $1.08 annual dividend yields 4.97% at Wednesday’s $21.75 share price.

TSLX Returns

To put it all together, add TSLX’s estimated annual dividend of $1.08 to the estimated price upside of $0.95 to find a $2.03 gross gain.

At Wednesday’s $21.75 share price, a little over $1000 would buy 46 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about  $0.22 per share.

Subtracting that likely $0.22 brokerage cost from the $2.03 gross gain produces a net gain of $1.81 X 46 shares = $83.26 for a 8.33% estimated net gain.

You might choose to pounce on Sixth Street Specialty Lending Inc. It is a 13-year-old dividend-paying Dallas TX based business development company.  Furthermore, the estimated $49.70 of annual dividend income from $1k invested is over 2.25 times greater than TSLX’s recent $21.75 single share price.

The exact track of Sixth Street Specialty Lending Inc.'s ongoing future price and dividend will be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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