BCSF
Bain Capital Specialty Finance, Inc.
stock NYSE

All four of these are BDCs, so this isn't really a diversified income portfolio, it's one big bet on private credit. They all lend to similar mid-market companies, so if credit conditions turn (recession, defaults), all four move together. That's the real "overlap risk" here, not one stock overlapping with another.
BCSF has the strongest dividend quality numbers of the bunch, 95 out of 100, with a solid 5-year dividend growth rate around 10.6% a year. But it's also the riskiest of the four (4 out of 5 on risk) and its coverage ratio of 1.24 is thinner than the others. Its share price trend has also been weak for a while, so don't expect price appreciation to help your total return here.
OBDC sits in the middle. Dividend quality is decent (68/100), risk is low, coverage is good at 1.63x. Price trend is weak too though, so this is an income play, not a growth one.
BXSL is the one I'd slow down on. Its dividend quality score is actually the weakest of the four at 39/100, even though coverage at 1.42x and the low risk rating look fine on the surface. That means I wouldn't assume the 12.46% yield is as safe as it looks on paper. Price trend is weak here too.
GBDC is the one I'd lean on most for actual "dividend quality." 82/100 score, the best coverage of the group at 1.87x, and low risk. Yield is the lowest of the four at 10.15%, but that's often the tradeoff for safety, along with a solid 5-year dividend growth rate around 8.2% a year. Same story on price trend though, it's been weak, so again this is for the income, not the stock going up.
If I were building this, I'd overweight GBDC and OBDC for the safer, better-covered income, keep BCSF smaller since it's higher risk, and go lighter on BXSL given its weaker dividend quality score relative to the others. And keep in mind, since it's all BDCs, a bad credit cycle hits every position at once, so this isn't a substitute for actual diversification across sectors.

All four of these are BDCs, so this isn't really a diversified income portfolio, it's one big bet on private credit. They all lend to similar mid-market companies, so if credit conditions turn (recession, defaults), all four move together. That's the real "overlap risk" here, not one stock overlapping with another.
BCSF has the strongest dividend quality numbers of the bunch, 95 out of 100, with a solid 5-year dividend growth rate around 10.6% a year. But it's also the riskiest of the four (4 out of 5 on risk) and its coverage ratio of 1.24 is thinner than the others. Its share price trend has also been weak for a while, so don't expect price appreciation to help your total return here.
OBDC sits in the middle. Dividend quality is decent (68/100), risk is low, coverage is good at 1.63x. Price trend is weak too though, so this is an income play, not a growth one.
BXSL is the one I'd slow down on. Its dividend quality score is actually the weakest of the four at 39/100, even though coverage at 1.42x and the low risk rating look fine on the surface. That means I wouldn't assume the 12.46% yield is as safe as it looks on paper. Price trend is weak here too.
GBDC is the one I'd lean on most for actual "dividend quality." 82/100 score, the best coverage of the group at 1.87x, and low risk. Yield is the lowest of the four at 10.15%, but that's often the tradeoff for safety, along with a solid 5-year dividend growth rate around 8.2% a year. Same story on price trend though, it's been weak, so again this is for the income, not the stock going up.
If I were building this, I'd overweight GBDC and OBDC for the safer, better-covered income, keep BCSF smaller since it's higher risk, and go lighter on BXSL given its weaker dividend quality score relative to the others. And keep in mind, since it's all BDCs, a bad credit cycle hits every position at once, so this isn't a substitute for actual diversification across sectors.