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

Saratoga Investment Corp (NYSE:SAR) declared a monthly dividend on Thursday, June 11th. Stockholders of record on Monday, July 6th will be paid a dividend of 0.25 per share by the financial services provider on Thursday, July 23rd. This represents a c) annualized dividend and a dividend yield of 13.4%. The ex-dividend date of this dividend is Monday, July 6th.

Saratoga Investment has raised its dividend by an average of 0.2%per year 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 Price Performance

SAR opened at $22.31 on Friday. The stock’s 50-day moving average price is $22.44 and its 200 day moving average price is $22.82. Saratoga Investment has a 12-month low of $20.78 and a 12-month high of $25.64. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 0.18. The firm has a market cap of $362.98 million, a price-to-earnings ratio of 9.58 and a beta of 0.54.

Saratoga Investment (NYSE:SAR) last posted its earnings results on Tuesday, May 5th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.53. Saratoga Investment had a return on equity of 9.29% and a net margin of 29.12%.The firm had revenue of $6.85 million for the quarter, compared to analyst estimates of $30.85 million. As a group, sell-side analysts expect that Saratoga Investment will post 2.15 earnings per share for the current year.

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.