MAIN - Oaktree Specialty Lending: Trading At A Premium To NAV

2024-03-24 06:11:12 ET

Summary

• 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.

Overview

I frequently ignored Oaktree Specialty Lending ( OCSL ) due to the falling share price. I figured that there was no way OCSL had the ability to provide a sufficient level of total return with such a fall in share price. Since inception, the BDC (business development company) is down nearly 47% in price. However, looking at total return since inception paints another story. Total return since inception is approximately 170% because of the high distributions....

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