Blackstone Secured Lending Fund (BXSL) is a closed-end investment fund focused on originating and acquiring senior secured loans predominantly for U.S. middle-market companies. As a subsidiary of the renowned Blackstone Group, BXSL benefits from unparalleled market expertise and a comprehensive network, enabling it to achieve strong risk-adjusted returns while emphasizing capital preservation. With a rigorous investment methodology and a highly experienced management team, BXSL presents institutional investors with a compelling opportunity for portfolio diversification and stable income streams, solidifying its role as a significant participant in the private credit sector.
| Revenue (TTM) | $1.39B |
| Gross Profit (TTM) | $1.39B |
| EBITDA | — |
| Operating Margin | 87.00% |
| Return on Equity | 7.11% |
| Return on Assets | 4.99% |
| Revenue/Share (TTM) | $6.01 |
| Book Value | $26.26 |
| Price-to-Book | 0.91 |
| Price-to-Sales (TTM) | 3.90 |
| EV/Revenue | 27.98 |
| EV/EBITDA | — |
| Quarterly Earnings Growth (YoY) | -83.50% |
| Quarterly Revenue Growth (YoY) | -9.00% |
| Shares Outstanding | $232.65M |
| Float | 0 |
| % Insiders | 8.65% |
| % Institutions | 43.47% |
Volatility is currently expanding
Blackstone Secured Lending has seen its dividend yield spike to 13% on the back of a sustained collapse in its stock over the last year. The dividend is 100% covered by NII of $0.77 per share for BXSL's fiscal 2026 first quarter. BXSL has seen an increase in its non-accrual rate. This was 3.1% of investments at fair value at the end of the first quarter, up from 0.1% a year ago.
Blackstone Secured Lending Fund trades at a 0.91x book value with a 12.9% yield, offering high income and downside protection. BXSL's portfolio is 97.6% first-lien secured debt, diversified across 316 companies, with strong credit ratings and conservative leverage at 1.32x. I maintain a 'Buy' rating on BXSL, citing its fully covered dividend, attractive risk/reward, and Blackstone's ability to pivot toward secular growth sectors.
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 remains cautious regarding 2026 dividend sustainability (along with most peers). 6 covered peers already reduced dividends during Q1-Q2 2026. A couple more cuts could occur during Q3-Q4 2026. A BXSL dividend cut during calendar Q3 2026 is not a 100% probability but the odds of a 2026 reduction remain likely (analyzing the forward yield curve).
Part 1 of this article compares BXSL's recent quarterly change in NAV, quarterly and trailing 24-month economic return, NII, and current valuation to 11 BDC peers. Part 1 also performs a comparative analysis between each company's investment portfolio as of 12/31/2025 and 3/31/2026. This includes an updated percentage of investments on non-accrual status. I also provide a list of the other BDC stocks I currently believe are undervalued (a buy recommendation), overvalued (a sell recommendation), or appropriately valued (a hold recommendation).
Blackstone Secured Lending Fund (BXSL) posted a 0.4% total NAV return in Q1, outperforming the BDC sector median despite notable portfolio headwinds. BXSL trades at a 10% discount to book value and a 13% dividend yield, but faces potential dividend pressure from rising non-accruals and NII pressures. Medallia's writedown drove the largest NAV drop since IPO (excluding COVID), raising questions about portfolio concentration and recurring revenue loan underwriting.
The June GVAS portfolio highlights 13 'safer,' fair-priced large-cap value stocks with strong dividend yields and positive free cash flow margins. Top ten GVAS stocks are forecasted to deliver average net gains of 39.68% by June 2027, with yields ranging from 7.9% to 16.46%. Energy and financial sectors dominate the highest-yielding, lowest-priced GVAS, with Okeanis Eco Tankers and IRSA Inversiones offering standout upside potential.
April net investment activity reached a multi-year low as rising stock valuations and BDC sector weakness prompted a cautious approach and selective BDC purchases. Focused April allocations on Ares Capital, Blue Owl Capital, and Hercules Capital, yielding a 7.5% average on new investments despite sector headwinds. Dividend income set a modest April record at $990, up 3% year-over-year, with BDCs contributing 27% of Q2 year-to-date dividends but facing potential further cuts.
There is a principle I have followed for 30 years in this business. When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone alive, you do not sit on your hands and debate whether the timing is perfect.
Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Blackstone Secured Lending faces mounting risks with sequential declines in net investment income and NAV and a sharp rise in non-accruals. BXSL's dividend coverage dropped to 100%, and non-accruals surged from 0.6% to 4.7%, signaling deteriorating credit quality. Despite a 12.6% yield and 7.3% NAV discount, I see no near-term catalysts and expect a potential 9–10% dividend cut before year-end.
