Blackstone Secured Lending

BXSL

Market cap $6.06B

These two income plays just fell hard, but the fundamentals didn't. They have double-digit yields, deep discounts, and balance sheet firepower. It's the kind of setup long-term income investors often wait years for.

These yields look risky at first glance. However, the market is missing important details. These are rare setups that could deliver income and upside at the same time.

Blue-chip dividend stocks are generally excellent investments for investors who prioritize a combination of income, total returns, and risk management. Two widely trusted blue-chip dividend stocks may be increasingly at-risk of a sharp pullback. I take a look at why this is the case.

BDC net investment income levels are declining as the Fed lowers rates. Despite lower base rates, I see no reason to rotate out of the BDC sector. In the article I detail how BDCs have outperformed the S&P 500 and high yield credit even in prolonged low-rate environments.

Recent economic data and stock price valuations have recently become disconnected in two high-yielding blue-chip stocks. This presents a rare golden buying opportunity. I share why these 11%+ yields are compelling buys on the recent dip and what risks still linger.

The market is flashing a warning on several popular high-yield stocks that most income investors are ignoring. One key risk could completely reshape how these dividends are viewed. A seemingly safe yield may be closer to the chopping block than expected.

The market looks very overvalued today. However, there is a corner of it that appears largely overlooked. I detail why I am pouring a large percentage of my portfolio into this golden buying opportunity.

Part 2 of this article compares Blackstone Secured Lending's recent dividend per share rates, yield percentages, and several other highly detailed (and useful) dividend sustainability metrics to 11 other BDC peers. BXSL's management team remains cautious regarding 2026 dividend sustainability (along with most peers). Several peers will be reducing their dividend during calendar Q1 2026 (this upcoming quarter). A BXSL dividend cut during calendar Q1 2026 is not a forgone conclusion but the probability of a reduction during 2026 remains likely (analyzing the forward yield curve).

BDCs face earnings pressure from lower base rates, but fears of severe dividend cuts are overstated. Quite many BDCs have several levers to pull in order to absorb ~100 bps of base rate cuts without touching their dividends. Yet, I would say that the non-accrual risk is understated.

Agency mortgage REITs duel to the dividend cut. There are 7 facing off. The top 3 are much better than the other 4. Valuations are important and awful. Deal with it.