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Sixth Street Specialty LendingTSLX +1.66%49 5-Year Yield-on-Cost % is 10.21 as of Jul. 16, 2026, which is 12% below its 10-year median of 11.56. GuruFocus rates TSLX with a GF Score™ of 49/100 and a GF Value™ of $12.63 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,115 Asset Management companies, Sixth Street Specialty Lending ranks better than 75.7% on this metric.
The historical rank and industry rank for Sixth Street Specialty Lending's 5-Year Yield-on-Cost % or its related term are showing as below:
TSLX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 9.01 Med: 11.56 Max: 16.9
Current: 10.21
During the past 13 years, Sixth Street Specialty Lending's highest Yield on Cost was 16.90. The lowest was 9.01. And the median was 11.56.
TSLX's 5-Year Yield-on-Cost % is ranked better than 75.7% of 1115
companies
in the Asset Management industry
Industry Median: 6.45
vs TSLX: 10.21
Sixth Street Specialty Lending (NYSE:TSLX) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Sixth Street Specialty Lending 5-Year Yield-on-Cost % Related Terms
TSLX vs BCAT, BDJ, BST: 5-Year Yield-on-Cost % Comparison
For the Asset Management subindustry, Sixth Street Specialty Lending's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sixth Street Specialty Lending 5-Year Yield-on-Cost % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Sixth Street Specialty Lending's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Sixth Street Specialty Lending's 5-Year Yield-on-Cost % falls into.
Sixth Street Specialty Lending 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Sixth Street Specialty Lending (TSLX) has a 5-Year Yield-on-Cost % of 10.21 as of Jul. 16, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Sixth Street Specialty Lending and its competitors. This is 12% below median its historical median of 11.56. Over the past decade, Sixth Street Specialty Lending's 5-Year Yield-on-Cost % has ranged from 9.01 to 16.90. According to the industry distribution chart, Sixth Street Specialty Lending ranks #271 out of 1115 companies in the Asset Management industry, placing it in the top 24.3%.
Is Sixth Street Specialty Lending's 5-Year Yield-on-Cost % too high?
Sixth Street Specialty Lending's current 5-Year Yield-on-Cost % of 10.21 is 12% below median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 9.01 to a high of 16.90. The Asset Management industry median 5-Year Yield-on-Cost % is 6.45. Sixth Street Specialty Lending's value of 10.21 is 58.3% above this industry median. Based on the distribution chart, Sixth Street Specialty Lending ranks #271 out of 1115 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Sixth Street Specialty Lending has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sixth Street Specialty Lending's 5-Year Yield-on-Cost % compare to BCAT and BDJ?
According to the Asset Management industry distribution chart, Sixth Street Specialty Lending ranks #271 out of 1115 companies for 5-Year Yield-on-Cost %. This places Sixth Street Specialty Lending in the top 24% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 6.45. Sixth Street Specialty Lending's value of 10.21 is 58.3% above this benchmark. Historically, Sixth Street Specialty Lending's own 5-Year Yield-on-Cost % has ranged from 9.01 to 16.90 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 6.45, Sixth Street Specialty Lending has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Asset Management company?
The median 5-Year Yield-on-Cost % among Asset Management companies is 6.45, based on 1,115 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sixth Street Specialty Lending's current 5-Year Yield-on-Cost % of 10.21 is 58.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Sixth Street Specialty Lending and its competitors. For the Asset Management industry, the median 5-Year Yield-on-Cost % is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sixth Street Specialty Lending's current 5-Year Yield-on-Cost % is 10.21, which is 12% below median its own 10-year median of 11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sixth Street Specialty Lending stock overvalued right now?
Based on GuruFocus' analysis, Sixth Street Specialty Lending (TSLX) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.63, compared to a current price of $17.71 — trading 40.2% above its estimated fair value. The current 5-Year Yield-on-Cost % is 10.21, which is 12% below median its 10-year median of 11.56 and 58.3% above the Asset Management industry median of 6.45. Sixth Street Specialty Lending's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Sixth Street Specialty Lending (TSLX), the current 5-Year Yield-on-Cost % is 10.21 as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sixth Street Specialty Lending (TSLX) Overvalued in 2026?
Based on GuruFocus' analysis, Sixth Street Specialty Lending stock appears to be overvalued.
The current stock price of $17.71 is trading 40.2% above its estimated GF Value™ of $12.63.
GuruFocus considers Sixth Street Specialty Lending to be Significantly Overvalued.
Key valuation signals for TSLX:
5-Year Yield-on-Cost %: 10.21 (12% below median its 10-year median of 11.56)
GF Value™: $12.63 vs. price of $17.71 (40.2% above fair value)
Industry Position: 58.3% above the Asset Management median (#271 of 1115)
No single metric tells the full story. See the TSLX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sixth Street Specialty Lending Business Description
Sixth Street Specialty Lending Inc is a specialty finance company focused on providing flexible, fully committed financing solutions to middle market companies located in the United States of America. The company partners with other companies across a variety of industries and provides creative solutions 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.
49GF Score
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