As economic uncertainty rises due to new tariffs and uncertain Federal Reserve policy on interest rates, investors are increasingly turning to high-yield dividend stocks for stability and income. Treasury yields have become less attractive compared to dividend stocks offering returns above 8%. With fears of stagflation and declining GDP in Q1 2025, many are reevaluating their portfolios in favor of companies with strong dividend histories and resilient financial structures.
In late 2023, Blackstone Secured Lending Fund (BXSL) and Sixth Street Specialty Lending (TSLX) were already noted for their high yields, but many analysts questioned their durability in a slowdown. However, current data shows both have maintained or increased dividends and rebounded strongly from broader market downturns. For OneMain Holdings (OMF), legacy concerns over subprime lending exposure have been partially offset by its pivot to higher quality borrowers and stable payout ratios. Recent tariff impacts on auto lending are also playing a larger role in lending dynamics than initially expected.
How do dividend-focused investors view Blackstone Secured Lending Fund?
Can Sixth Street Specialty Lending and OneMain Holdings withstand economic turbulence?
Blackstone Secured Lending Fund (NYSE:BXSL), structured as a Business Development Company (BDC), offers a dividend yield of 9.26%. Its loan portfolio is composed primarily of first-lien senior secured loans, which account for 95% of its assets and are backed by borrower collateral. It is managed by Blackstone Credit BDC Advisors, a subsidiary of Blackstone, a firm overseeing more than $1 trillion in assets. Although no bailout obligations exist, BXSL benefits indirectly from Blackstone’s reputation. The fund’s structure and lending practices lower the risk of dividend disruption.
Sixth Street Specialty Lending (NYSE:TSLX) functions similarly to BXSL but is managed by Sixth Street Specialty Lending Advisers. With a dividend yield of 9.2%, TSLX also issues supplemental dividends when earnings exceed expectations. The company maintains net investment income levels that exceed its base dividend commitments. In prior market downturns, TSLX experienced significant temporary drawdowns but fully recovered, with current performance showing a 53% gain over five years and outpacing the S&P 500 so far in 2025. Its consistent payouts continue to attract income-focused investors.
OneMain Holdings (NYSE:OMF) differs from the BDC structure by being a consumer finance company. It primarily provides personal loans and has recently shifted towards higher-quality borrowers, reducing default risks. Currently offering an 8.2% yield, OneMain’s payout ratio of 51.45% gives it a buffer in less favorable conditions. The company expects revenue growth of 6% to 8% in 2025, driven in part by an expanding auto lending segment. Rising auto prices due to tariffs may increase loan volumes and interest income, positioning OneMain to benefit from the evolving macro environment.
Market volatility tied to geopolitical events and trade policies is prompting a reassessment of income-generating strategies. The relative security of structured finance companies like BXSL and TSLX, and the adaptive model of OneMain, offer options for those seeking stable cash flow. These selections present higher-than-average yields and have demonstrated resilience in adverse economic periods. However, each company carries distinct risks tied to their lending focus and economic sensitivity, underlining the importance of diversification and due diligence.
Investors considering high-yield dividend stocks should weigh both yield and risk profiles. Funds like BXSL and TSLX with secured lending practices offer relative stability, while consumer lenders like OMF can benefit from niche economic situations such as rising used car markets. Tariffs and interest rate policy shifts could redefine income strategies over the next year. Monitoring payout ratios, asset structures, and borrower quality will be crucial for evaluating sustainability. Those aiming for consistent yield should prioritize companies with proven management practices and strong underwriting standards.
