Saratoga Investment Corp (NYSE:SAR) Announces $0.25 Monthly Dividend

Saratoga Investment Corp (NYSE:SAR) announced a monthly dividend on Thursday, June 11th. Shareholders of record on Wednesday, August 5th will be given a dividend of 0.25 per share by the financial services provider on Tuesday, August 25th. This represents a c) annualized dividend and a dividend yield of 13.4%. The ex-dividend date of this dividend is Wednesday, August 5th.

Saratoga Investment has raised its dividend by an average of 0.2%annually over the last three years. Saratoga Investment has a dividend payout ratio of 90.4% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities analysts expect Saratoga Investment to earn $2.12 per share next year, which means the company may not be able to cover its $3.00 annual dividend with an expected future payout ratio of 141.5%.

Saratoga Investment Stock Performance

NYSE:SAR opened at $22.31 on Friday. The business’s 50-day moving average price is $22.44 and its two-hundred day moving average price is $22.82. Saratoga Investment has a twelve month low of $20.78 and a twelve month high of $25.64. The stock has a market cap of $362.98 million, a P/E ratio of 9.58 and a beta of 0.54. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 0.18.

Saratoga Investment (NYSE:SAR) last released its quarterly earnings results on Tuesday, May 5th. The financial services provider reported $0.53 earnings per share for the quarter, meeting the consensus estimate of $0.53. The firm had revenue of $6.85 million for the quarter, compared to analysts’ expectations of $30.85 million. Saratoga Investment had a return on equity of 9.29% and a net margin of 29.12%. As a group, equities analysts predict that Saratoga Investment will post 2.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Saratoga Investment

Large investors have recently modified their holdings of the company. BNP Paribas Financial Markets purchased a new position in shares of Saratoga Investment during the 3rd quarter valued at about $25,000. Quantbot Technologies LP purchased a new position in Saratoga Investment in the 3rd quarter worth approximately $36,000. Advisory Services Network LLC purchased a new position in Saratoga Investment in the 3rd quarter worth approximately $45,000. Kestra Advisory Services LLC purchased a new position in Saratoga Investment in the 4th quarter worth approximately $46,000. Finally, Daytona Street Capital LLC purchased a new position in Saratoga Investment in the 4th quarter worth approximately $51,000. 19.09% of the stock is owned by hedge funds and other institutional investors.

About Saratoga Investment

Saratoga Investment Corp. is a closed-end, externally managed investment company that seeks to generate current income and total return through a diversified portfolio of private U.S. companies. Trading on the New York Stock Exchange under the ticker SAR, the firm primarily targets middle-market businesses across a broad range of industries, including industrials, healthcare, consumer products, financial services and technology. Its investment approach combines debt and equity instruments, providing flexible capital solutions such as first-lien and second-lien secured loans, mezzanine debt, preferred equity and common equity positions.

As an actively managed vehicle, Saratoga Investment works closely with portfolio companies’ management teams to support growth initiatives, operational improvements, and strategic transactions.