Saratoga Investment Corp. Declares Dividend of $0.75 Per Share for the Fourth Quarter of Fiscal 2026; Paid in Monthly Dividends of $0.25 Per Share

Rhea-AI Summary

Saratoga Investment (NYSE:SAR) declared a base quarterly dividend of $0.75 per share for fiscal Q4 2026, paid as three monthly dividends of $0.25 per share on Jan 22, Feb 23 and Mar 19, 2026 (record dates Jan 6, Feb 4, Mar 3).

The company said annualizing the rate implies a 13.1% dividend yield based on a $22.86 share price on Dec 9, 2025. Shareholders may elect cash or participate in the DRIP, which price shares at 95% of a 10-day average before each payment date.

Positive

• Quarterly dividend declared: $0.75 per share aggregated
• Monthly payments: $0.25 per month (Dec 2025–Feb 2026)
• Implied annualized yield of 13.1% (based on $22.86 price)
• DRIP available for shareholders choosing stock instead of cash

Negative

• DRIP pricing at 95% may cause share dilution for holders
• $450 million CLO fund is in wind-down (reduces recurring assets)

News Market Reaction

+0.09%

1 alert

+0.09% News Effect

On the day this news was published, SAR gained 0.09%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 FY26 base dividend: $0.75 per share Monthly dividend: $0.25 per share Indicated dividend yield: 13.1% +5 more

8 metrics

Q4 FY26 base dividend $0.75 per share Aggregate dividend for fiscal Q4 2026

Monthly dividend $0.25 per share Paid Dec 2025, Jan 2026, Feb 2026

Indicated dividend yield 13.1% Based on $22.86 share price on Dec 9, 2025

Reference share price $22.86 Stock price used to quote dividend yield (Dec 9, 2025)

FY2026 total dividend $3.25 per share Full year fiscal 2026 (base $3.00 + special $0.25)

FY2025 total dividend $3.31 per share Full year fiscal 2025 (base $2.96 + special $0.35)

CLO fund size $450 million Collateralized loan obligation fund in wind-down

JV CLO fund size $400 million Joint venture collateralized loan obligation fund

Market Reality Check

Price: $23.52 Vol: Volume 70,901 is below th...

normal vol

$23.52 Last Close

Volume Volume 70,901 is below the 20-day average of 94,242, suggesting muted pre-news activity. normal

Technical Shares at $22.95 are trading below the 200-day MA of $24.06 and 12.3% under the 52-week high.

Peers on Argus

SAR gained 0.39% with modest, mixed peer moves (e.g., SCM +1.41%, XFLT -0.22%), ...

SAR gained 0.39% with modest, mixed peer moves (e.g., SCM +1.41%, XFLT -0.22%), indicating a stock-specific reaction rather than a broad asset-management move.

Historical Context

5 past events · Latest: Nov 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 12	Special dividend	Positive	+1.6%	Special $0.25 dividend fulfilling FY25 distribution needs.
Nov 06	Credit facility	Positive	-0.8%	$85M Valley National Bank facility replaces smaller, costlier line.
Oct 07	Earnings results	Negative	-4.7%	Q2 FY26 results with lower adjusted NII despite strong ROE and NAV.
Sep 26	Earnings preview	Neutral	+0.3%	Announcement of timing for Q2 FY26 results and conference call.
Sep 11	Quarterly dividends	Positive	+0.4%	Q3 FY26 $0.75 dividend declared, paid in $0.25 monthly installments.

Pattern Detected

Dividend-related announcements have generally seen modest positive price alignment, while financing news showed a divergence and earnings skewed negative.

Recent Company History

Over the last five events since Sep 2025, Saratoga Investment reported steady dividends, a new $85.0M credit facility, and Q2 FY26 results with NAV/share $25.61 and AUM $995.3M. Dividend declarations on Sep 11 and the Nov 12 special dividend both coincided with small gains, while the earnings release on Oct 7 saw a larger negative reaction. Today’s Q4 FY26 dividend declaration extends that consistent payout profile.

Market Pulse Summary

This announcement reaffirmed a base dividend of $0.75 for Q4 FY2026, continuing Saratoga’s pattern o...

Analysis

This announcement reaffirmed a base dividend of $0.75 for Q4 FY2026, continuing Saratoga’s pattern of $0.25 monthly payouts and sustaining a double-digit yield based on recent prices. Historical data show consistent distributions and prior special dividends, alongside active credit facilities and CLO exposure. Investors following this story have typically monitored future earnings, portfolio credit quality, and funding costs to assess how sustainable the current $3.00 annual base dividend remains.

Key Terms

dividend reinvestment plan, DRIP, collateralized loan obligation, CLO, +3 more

7 terms

dividend reinvestment plan financial

"receive payment of the dividend in cash or receive shares of common stock pursuant to the Company’s dividend reinvestment plan (“DRIP”)"

A dividend reinvestment plan lets shareholders automatically use cash dividends to buy more shares of the same company instead of receiving the money. It matters to investors because it turns regular payouts into a steady way to grow ownership and take advantage of compound returns—like having your savings automatically buy additional slices of a pie over time—while often reducing transaction costs and smoothing purchase timing.

DRIP financial

"pursuant to the Company’s dividend reinvestment plan (“DRIP”)"

A DRIP (dividend reinvestment plan) automatically uses cash dividends to buy additional shares of the same company instead of paying the money to the investor. Like using spare change from each paycheck to buy more of something you already own, a DRIP helps holdings grow over time through compounding without requiring the investor to decide each time, which can boost long‑term returns but reduce short‑term cash income.

collateralized loan obligation financial

"manages a $450 million collateralized loan obligation (“CLO”) fund that is in wind-down"

A collateralized loan obligation (CLO) is a financial product that bundles many corporate loans into a single pool and then sells pieces of that pool to investors, with each piece offering different levels of risk and return. Think of it like a large box of varied loans sliced into portions so investors can choose higher safety with lower yield or higher reward with more risk; CLO performance matters because it concentrates credit and interest-rate risk and affects income stability for holders.

CLO financial

"a $450 million collateralized loan obligation (“CLO”) fund that is in wind-down"

A CLO (Collateralized Loan Obligation) is a financial vehicle that pools many corporate loans and sells slices of that pool to investors, with each slice carrying a different mix of risk and return—think of it as a loan-based fund cut into safe and risky pieces. It matters to investors because CLOs can offer higher yields than traditional bonds but expose buyers to borrowers’ defaults and changes in interest rates, so understanding which slice you own is key to gauging potential reward and loss.

mezzanine debt financial

"invests primarily in senior and unitranche leveraged loans and mezzanine debt, and, to a lesser extent, equity"

Mezzanine debt is a hybrid loan that sits between a company’s senior bank debt and equity ownership: it pays higher interest than regular loans because it takes on more risk, and often includes an option to convert into shares or warrants. Investors care because it offers higher potential returns than plain debt while carrying greater chance of loss or equity dilution if the company struggles, making it a middle-ground choice for yield and upside.

unitranche financial

"invests primarily in senior and unitranche leveraged loans and mezzanine debt"

A unitranche loan is a single debt agreement that combines what would normally be separate senior and junior loans into one facility with a single interest rate and repayment schedule. For investors it simplifies the company's borrowing picture but changes the risk and return because lenders share one common claim on assets and receive a blended yield, which affects how quickly creditors are repaid in distress and the firm's flexibility to raise or restructure debt — like merging two traffic lanes into one road.

business development company regulatory

"has elected to be regulated as a business development company under the Investment Company Act of 1940"

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 11, 2025 (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 base quarterly dividend of $0.75 per share in aggregate for the fourth quarter of fiscal 2026, paid in three monthly dividends as follows:

Month	Amount per Share		Record Date	Payment Date
December 2025	$	0.25	January 6, 2026	January 22, 2026
January 2026	$	0.25	February 4, 2026	February 23, 2026
February 2026	$	0.25	March 3, 2026	March 19, 2026

“Our board of directors approved an unchanged aggregated dividend for the fourth quarter of fiscal 2026 of $0.75 per share, paid in monthly dividends of $0.25 per share per month. Annualizing this dividend rate implies a 13.1% dividend yield based on Saratoga’s recent stock price of $22.86 per share on December 9, 2025. Our board of directors is pleased to continue delivering attractive returns to our shareholders via solid and consistent dividends,” said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment.

This is the fourth group of dividends declared for fiscal year 2026, in addition to the special dividend declared last month.

Historical Dividend Distributions

Period (Fiscal Year ends Feb)	Base Dividend Per Share		Special Dividend Per Share		Total Dividend Per Share
Fiscal Q4 2026 (February 2026)	$	0.25		-	$	0.25
Fiscal Q4 2026 (January 2026)	$	0.25		-	$	0.25
Fiscal Q4 2026 (December 2025)	$	0.25		-	$	0.25
Fiscal Q3 2026 (November 2025)	$	0.25	$	0.25	$	0.50
Fiscal Q3 2026 (October 2025)	$	0.25		-	$	0.25
Fiscal Q3 2026 (September 2025)	$	0.25		-	$	0.25
Fiscal Q2 2026 (August 2025)	$	0.25		-	$	0.25
Fiscal Q2 2026 (July 2025)	$	0.25		-	$	0.25
Fiscal Q2 2026 (June 2025)	$	0.25		-	$	0.25
Fiscal Q1 2026 (May 2025)	$	0.25		-	$	0.25
Fiscal Q1 2026 (April 2025)	$	0.25		-	$	0.25
Fiscal Q1 2026 (March 2025)	$	0.25		-	$	0.25
Full Year Fiscal 2026	$	3.00	$	0.25	$	3.25
Full Year Fiscal 2025	$	2.96	$	0.35	$	3.31
Full Year Fiscal 2024	$	2.86		-	$	2.86
Full Year Fiscal 2023	$	2.44		-	$	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 95% of the average of the market prices per share at the close of trading on the ten (10) trading days immediately preceding (and including) the payment date.

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 $450 million collateralized loan obligation (“CLO”) fund that is in wind-down and co-manages a joint venture (“JV”) fund that owns a $400 million collateralized loan obligation (“JV CLO”) fund.  It also owns 52% of the Class F and 100% of the subordinated notes of the CLO, 87.5% of both the unsecured loans and membership interests of the JV and 87.5% of the Class ER notes of the JV CLO. The Company’s diverse funding sources, combined with a permanent capital base, enable Saratoga Investment to provide a broad range of financing solutions.

Forward Looking Statements
This press release contains historical information and forward-looking statements with respect to the business and investments of the Company, including, but not limited to, the statements about 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 our future performance, taking into account all information currently available to us. These statements are not guarantees of future 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 we invest; changes in the financial, capital, and lending markets; an economic downturn or a recession and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of interest rate volatility on our business and our portfolio companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and the global economy; 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 invests, as well as those described from time to time in our filings with the Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date on which it is made. The Company undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2025 and subsequent filings, including the “Risk Factors” sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. 

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

FAQ

What dividend did Saratoga Investment (SAR) declare on December 11, 2025?

The board declared an aggregate $0.75 quarterly dividend paid as three monthly $0.25 payments.

What are the Saratoga Investment (SAR) dividend payment and record dates for Q4 fiscal 2026?

Payment dates are Jan 22, Feb 23, Mar 19, 2026; record dates are Jan 6, Feb 4, Mar 3, 2026 respectively.

How is the implied 13.1% yield for Saratoga Investment (SAR) calculated?

The company annualized the declared dividend and calculated yield based on a $22.86 share price on Dec 9, 2025.

Can Saratoga Investment (SAR) shareholders receive the Q4 fiscal 2026 dividend in stock?

Yes; shareholders can elect the DRIP, with shares priced at 95% of the 10‑day average market price before each payment date.

Will the Saratoga Investment (SAR) dividend declaration affect shareholder dilution?

Electing the DRIP may increase outstanding shares because new shares are issued at 95% pricing, potentially diluting existing holders.