Blackstone Secured Lending FundNYSE: BXSL

A durable income-focused portfolio strategy reduces income reduction risk and stress by prioritizing stable income over market-beating returns. In this respect, I have outlined my detailed approach for security selection and portfolio construction. Plus, I provide practical security examples for each of the portfolio buckets: strategic offense, strategic defense, tactical offense, and tactical speculation.

The Blackstone Secured Lending Fund is a "Buy" due to its attractive 10%+ dividend yield, appealing valuation, and low-risk portfolio. BXSL's operational performance is strong, with net investment income up 12.6% and solid revenue growth despite a minor decline in debt investment yields. The portfolio is low-risk, with 99% in first-lien senior secured debt, a low non-accrual ratio, and strong diversification across industries and companies.

The Blackstone Secured Lending Fund (BXSL) stock has done modestly well this year, rising by 7.20%. It has underperformed the market, with the S&P 500, Nasdaq 100, and Dow Jones rising to their all-time highs.

The strong September jobs report suggests a robust economy, benefiting high-yield investments like Blackstone Secured Lending and MPLX LP. BXSL carries a conservatively managed, diversified portfolio with high floating-rate debt exposure, and has consistently covered its dividend with net investment income. MPLX offers stable, fee-based cash flows, strong distribution growth, and strategic capital projects, supported by a solid balance sheet and investment-grade credit rating.

The Fed's 50 basis points rate cut signals a potential recession, urging long-term investors to focus on quality companies with strong fundamentals. Blackstone Secured Lending, Ares Capital, and Golub Capital BDC are well-equipped to handle economic downturns due to their strong portfolios, first-lien loan exposures, and investment-rated balance sheets. BDCs like BXSL, ARCC, and GBDC have high liquidity, investment-grade credit ratings, and experienced management, positioning them favorably for economic volatility.

Most retirement portfolios are structured to provide predictable and attractive current income. To fulfill these two criteria, the businesses have to carry robust capital structures, be exposed to high-quality cash flows, and, importantly, provide a decent yield already from the start. In this article, I elaborate on two blue-chip picks, which, in my opinion, have to be included in a retirement portfolio.

BXSL is a 'Buy' for income-focused investors despite rate cuts on the horizon, with September largely expected to see the first cut. This BDC consists primarily of first-lien senior secured debt, with an overwhelming majority of the portfolio in floating rates. Even with rate cuts coming up, the dividend coverage here is strong, and that puts them in a good position to maintain the payout going forward.

Dividend investing can be rewarding with compounding, and high-yield picks can give you a head start. Blackstone Secured Lending offers 10.3% yield, a conservative portfolio, and NAV/share growth potential. Imperial Brands shows resilience with pricing power, NGP growth, and 6.7% yield, making it a bargain with market-beating potential.

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