Sixth Street Specialty Lending: I Expect Another Dividend Cut

I've always liked Sixth Street Specialty Lending (TSLX). I'm one of its shareholders. And I want to hold onto my shares in the long term. But I've kept TSLX at a hold rating. TSLX cut its dividend in May. But I expect another cut in the quarters to come. TSLX's NII barely covers its dividend, with only a $0.01 per share margin, signaling a risk of further cuts. Rising debt costs and a 70 bps spread drop pressure TSLX's NII, while stable NAV and strong diversification offer some support. But I don't think their NAV will be stable for too long. I prefer to wait for a potential dividend cut and valuation pullback before considering TSLX a buy, despite Wall Street's optimism.