Earnings Presentation NASDAQ: OCSL First Quarter 2026 Forward Looking Statements & Legal Disclosures Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to impl ...

Core Insights - Gladstone Investment reported strong performance in fiscal 2026, with significant portfolio growth and a focus on maintaining monthly distributions while pursuing buyout investments that combine debt and equity [3][6]. Investment Activity - In the first nine months of fiscal 2026, the company invested approximately $163 million across four new portfolio companies, a decrease from about $221 million in fiscal 2025 [1]. - The company completed one new buyout investment during the quarter, bringing the total to 29 operating companies, with a healthy acquisition pipeline [2][6]. Financial Performance - Adjusted net investment income (NII) was reported at $0.21 per share, with total assets rising to approximately $1.2 billion, an increase of about $92 million from the previous quarter [2][6]. - Total investment income was $25.1 million, slightly below the prior quarter's $25.3 million, primarily due to lower dividend and success fee income [7]. Asset Valuation and NAV - The net asset value (NAV) increased to $14.95 per share from $13.53, driven by $1.77 per share of net unrealized appreciation and $0.09 per share of net realized gains [14]. - Portfolio company valuations increased by $70.2 million due to improved performance and higher valuation multiples, partially offset by weaker performance in some areas [13][22]. Debt and Financing Strategy - The company redeemed $74.8 million of 8% notes and issued $60 million of 6.875% notes, reducing interest on approximately $75 million of debt by about 110 basis points [4][15]. - The weighted average yield of the debt portfolio remained robust at 12.9%, with over half of the portfolio at its interest rate floor of 12.1% [5][9]. Distributions and Spillover Income - Gladstone Investment maintained its monthly dividend at $0.08 per share, with an estimated spillover income of approximately $22.9 million, or $0.58 per share, as of Dec. 31 [18]. - Total distributable income was reported at $108.7 million, or $2.73 per share, reflecting net unrealized appreciation and the GAAP-adjusted spillover balance [19]. Credit Quality - The company had three portfolio companies on non-accrual status, unchanged from the prior quarter, representing 3.8% of the total portfolio at cost [20]. - Management expressed improved confidence in the non-accrual investments, noting positive EBITDA generation despite existing structural issues [21].

Core Insights - The article emphasizes the potential of high-quality dividend stocks as a reliable investment strategy for long-term wealth growth, particularly in a challenging economic environment [1][2][3] Dividend Stocks Performance - A study by Hartford Funds and Ned Davis Research indicates that dividend stocks have outperformed non-payers over 51 years, achieving an annualized return of 9.2% compared to 4.31% for non-payers, while also exhibiting lower volatility [3] Investment Opportunities - The article highlights three ultra-high-yield dividend stocks with an average yield of 7.97% that are considered attractive buys in February [5] Sirius XM Holdings - Sirius XM Holdings offers a dividend yield of 5.31%, with its share price depressed, bringing the yield close to its all-time high of 5.5% [6][9] - The company operates as a legal monopoly in satellite radio, providing it with strong subscription pricing power, as over 75% of its revenue comes from subscriptions rather than advertising [7][10] - Sirius XM's shares are currently trading at 6.6 times forward-year earnings, representing a 46% discount to its average forward P/E ratio since 2020 [11] The Campbell's Company - The Campbell's Company has a dividend yield of 5.58%, with shares recently hitting their lowest point since May 2009 [12][16] - The company faces short-term challenges from steel tariffs and weakness in snack products, but these are not expected to impact long-term growth significantly [13][14] - Campbell's is actively transforming its operations and pursuing acquisitions to enhance growth, including a $2.7 billion acquisition of Sovos Brands [15][18] PennantPark Floating Rate Capital - PennantPark Floating Rate Capital boasts a remarkable dividend yield of 13.03%, making it an attractive investment option [19] - The company primarily invests in debt securities of middle-market companies, with 87% of its portfolio in debt [20] - PennantPark's lending portfolio benefits from a weighted-average yield of 10.2% on its debt investments, with 99% of its outstanding debt being variable rate [22][23] - The company has maintained a low delinquency rate of 0.4% in its investment portfolio, with over 99% of its loans being first-lien secured debt [24]

Core Viewpoint - The BlackRock TCP Capital Corp. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with significant claims regarding the misrepresentation of its net asset value (NAV) and investment valuations during the specified class period [1][3]. Group 1: Class Action Details - The class action lawsuit is titled Burnell v. BlackRock TCP Capital Corp., and it allows purchasers of BlackRock TCP securities from November 6, 2024, to January 23, 2026, to seek appointment as lead plaintiff by April 6, 2026 [1]. - The lawsuit alleges that BlackRock TCP's NAV per share was $11.90 as of December 31, 2023, prior to the class period [2]. Group 2: Allegations Against BlackRock TCP - The lawsuit claims that BlackRock TCP made false or misleading statements regarding the timely valuation of its investments and the effectiveness of its portfolio restructuring efforts [3]. - It is alleged that BlackRock TCP's unrealized losses were understated, leading to an overstatement of its NAV [3]. Group 3: Impact on NAV and Stock Price - On February 27, 2025, BlackRock TCP reported that the number of portfolio companies on non-accrual status had more than doubled, resulting in a NAV decline of over 22% year-over-year to $9.23 per share, which led to a 9.6% drop in stock price [4]. - On January 23, 2026, BlackRock TCP disclosed that its NAV per share was actually between $7.05 and $7.09, representing a 19% decrease from the previous quarter and a 23.4% decrease from the prior year, causing the stock price to fall nearly 13% [5].

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a focus on both growth and income [1].

Key Takeaways ARCC to report Q4 and 2025 results on Feb. 4, with Q4 revenues expected to rise 2.3% y/y.ARCC's Q4 EPS estimate is unchanged at 50 cents, implying a 9.1% decline from last year.ARCC faces higher expenses and yield compression from the 2025 rate cuts, pressuring spreads.Ares Capital Corporation (ARCC) is scheduled to announce fourth-quarter and 2025 results on Feb. 4, before market close. Similar to the previous reported quarter, the company is expected to have recorded an improvement in total ...

Core Viewpoint - The narrative suggests that 2026 will be a significant year for small-cap stocks, indicating a potential shift in market dynamics favoring smaller companies [1]. Group 1: Investment Strategy - The company emphasizes the importance of a diversified investment approach, combining classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance income and total return [1]. - A hybrid investment system is proposed, which aims to achieve total returns comparable to traditional index funds like the S&P 500 while focusing on income generation [1].

Group 1 - Business development companies are currently under pressure, leading to many trading at discounted valuations [1] - Runway Growth Finance (RWAY) is highlighted as a company trading near a deeply discounted valuation [1] - The article emphasizes the potential for long-term growth and income generation through a diversified investment strategy that includes dividend stocks, business development companies, REITs, and closed-end funds [1]

Company Overview - Goldman Sachs BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940, formed by The Goldman Sachs Group, Inc. to invest primarily in middle-market companies in the United States [4] - The company is externally managed by Goldman Sachs Asset Management, L.P., which is a wholly-owned subsidiary of Goldman Sachs [4] - GS BDC aims to generate current income and, to a lesser extent, capital appreciation through direct originations of secured and unsecured debt, as well as select equity investments [4] Financial Reporting - GS BDC will report its fourth quarter and fiscal year financial results for the period ended December 31, 2025, after the market closes on February 26, 2026 [1] - An earnings conference call will be held on February 27, 2026, at 9:00 am Eastern Time to discuss the financial results [1] Conference Call Participation - Interested parties can participate via telephone or audio webcast, with specific dial-in numbers provided for domestic and international callers [2] - Participants are encouraged to join the call approximately 10-15 minutes prior to the start time and reference "Goldman Sachs BDC, Inc." when prompted [2]

Core Viewpoint - Sound Income Strategies, LLC increased its stake in Blackstone Secured Lending Fund by 210,918 shares, valued at approximately $5.66 million, indicating confidence in the fund's performance and strategy [2][8]. Company Overview - Blackstone Secured Lending Fund is a large, externally managed Business Development Company (BDC) focused on originating senior secured loans for private U.S. companies, emphasizing capital preservation and current income through a diversified portfolio of primarily first lien loans [6][9]. - The fund reported a total revenue of $1.41 billion and a net income of $599.78 million for the trailing twelve months (TTM), with a dividend yield of 11.81% as of January 20, 2026 [4]. Recent Transactions - The recent purchase by Sound Income Strategies raised its BXSL stake to 1.98% of its 13F assets under management, moving BXSL to the 9th position in Sound Income Strategies' portfolio [8][10]. - The fund's position value increased by $7.26 million during the quarter, reflecting both the share additions and price movement [2]. Market Performance - As of January 20, 2026, BXSL shares were priced at $26.08, which represents an 11% decline over the past year, underperforming compared to the S&P 500 [8]. - The fund has achieved an annual net return of 11.3% since its inception, which may attract income-focused investors due to its strong dividend yield [10].