Carlyle Secured Lending: An 11% Yield That Is Still Worth Buying
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Carlyle Secured Lending offers an 11% yield, covering its dividend with net investment income, despite a decline in portfolio value and interest income. The non-accrual ratio improved significantly in 3Q24 due to selling underperforming loans, enhancing loan quality, and aligning with peers like Ares Capital.
December 03, 2024 | 10:45 am
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NEUTRAL IMPACT
Carlyle Secured Lending maintains an 11% yield, covering its dividend with net investment income. Despite an 8% YoY decline in portfolio value, the non-accrual ratio improved significantly, enhancing loan quality.
Carlyle Secured Lending's ability to maintain its dividend yield despite a decline in portfolio value is a positive sign for investors. The improvement in the non-accrual ratio indicates better loan quality, which is crucial for future income stability. However, the decline in portfolio value and interest income could impact future supplemental dividends, balancing the positive and negative aspects.
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IMPORTANCE 80
RELEVANCE 100