Saratoga Investment Corp. Announces Quarterly Dividend of $0.74 per Share for the Fiscal Second Quarter Ending August 31, 2024
Rhea-AI Summary
Saratoga Investment Corp. (NYSE:SAR) has declared a quarterly dividend of $0.74 per share for the fiscal second quarter ending August 31, 2024. This represents a 4.2% increase compared to the same quarter last year. The dividend is payable on September 26, 2024, to stockholders of record as of September 11, 2024. CEO Christian L. Oberbeck highlighted the company's diversified asset portfolio and strong dividend yield of 13.0% based on the recent stock price of $22.75. The dividend increase reflects a 37% growth over the past two years. Saratoga Investment, a business development company, focuses on providing financing solutions to U.S. middle-market businesses and has diverse funding sources, including SBIC-licensed subsidiaries and CLO funds.
Positive
- Quarterly dividend increased by 4.2% year-over-year to $0.74 per share
- 37% dividend growth over the past two years
- Strong dividend yield of 13.0% based on recent stock price
- Diversified asset portfolio contributing to solid investment performance
- Over-earning of dividend, potentially increasing Net Asset Value
Negative
- Potential risk of interest rate cuts affecting future earnings
News Market Reaction – SAR
In the trading session that priced this news, SAR gained 1.76%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
This Dividend Represents an Increase of Approximately
NEW YORK, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced that its Board of Directors has declared a quarterly dividend of
“The highly diversified nature of our asset portfolio, the solid overall performance of our investments during the recent stable interest rate environment, and the current over-earning of our dividend has allowed us to maintain a strong dividend for the quarter, with industry leading dividend yield and dividend coverage,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. “Saratoga’s second quarter dividend of
This is the second dividend declared in fiscal year 2025.
Historical Dividend Distributions
| Period (Fiscal Year ends Feb 28) | Dividend Per Share | |||
| Fiscal Q2 2025 | $ | 0.74 | ||
| Fiscal Q1 2025 | $ | 0.74 | ||
| Year-to-Date Fiscal 2025 (including pending dividend) | $ | 1.48 | ||
| Fiscal Q4 2024 | $ | 0.73 | ||
| Fiscal Q3 2024 | $ | 0.72 | ||
| Fiscal Q2 2024 | $ | 0.71 | ||
| Fiscal Q1 2023 | $ | 0.70 | ||
| Full Year Fiscal 2024 | $ | 2.86 | ||
| Fiscal Q4 2023 | $ | 0.69 | ||
| Fiscal Q3 2023 | $ | 0.68 | ||
| Fiscal Q2 2023 | $ | 0.54 | ||
| Fiscal Q1 2023 | $ | 0.53 | ||
| Full Year Fiscal 2023 | $ | 2.44 | ||
Shareholders will have the option to receive payment of the dividend in cash or receive shares of common stock pursuant to the Company’s dividend reinvestment plan (“DRIP”). Saratoga Investment shareholders who hold their shares with a broker must affirmatively instruct their brokers prior to the record date if they prefer to receive this dividend, and future dividends, in common stock. The number of shares of common stock to be delivered shall be determined by dividing the total dollar amount by
About Saratoga Investment
Saratoga Investment is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses. The Company invests primarily in senior and unitranche leveraged loans and mezzanine debt, and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Saratoga Investment’s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments. Saratoga Investment has elected to be regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies. Saratoga Investment Corp. owns two active SBIC-licensed subsidiaries, having surrendered its first license after repaying all debentures for that fund following the end of its investment period and subsequent wind-down. Furthermore, it manages a
Forward Looking Statements
Statements included herein contain certain “forward-looking statements” within the meaning of the federal securities laws, which relate to future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of future events and our future performance, taking into account all information currently available to us. These statements are not guarantees of future events, performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to: changes in the markets in which the Company invests; changes in the financial, capital, and lending markets; a rising interest rate environment and its impact on the Company’s business and its portfolio companies; regulatory changes; tax treatments; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to the Company; the impact of supply chain constraints and labor shortages on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invest; and those described from time to time in our filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. Saratoga Investment Corp. undertakes no duty to update any forward-looking statements made herein, whether as a result of new information, future developments or otherwise, except as required by law.
Contacts:
Saratoga Investment Corporation
535 Madison Avenue, 4th Floor
New York, NY 10022
Henri Steenkamp
Chief Financial Officer
Saratoga Investment Corp.
212-906-7800
Lena Cati
The Equity Group Inc.
212-836-9611 / lcati@equityny.com
Val Ferraro
The Equity Group Inc.
212-836-9633 / vferraro@equityny.com
