Saratoga Investment Corp. Declares Dividends for the Third Quarter Fiscal 2026 of $0.75 Per Share, In the Aggregate – Paid in a Monthly Dividend of $0.25 Per Share

Rhea-AI Summary

Saratoga Investment Corp. (NYSE:SAR) has declared a quarterly dividend of $0.75 per share for Q3 fiscal 2026, to be paid in three monthly installments of $0.25 per share. The payments are scheduled for October 23, November 20, and December 18, 2025.

Based on the company's recent stock price of $24.54 (as of September 9, 2025), this dividend rate represents an annualized yield of 12.2%. The company maintains its consistent dividend distribution pattern, having paid regular quarterly dividends since fiscal 2023, with historical payments showing steady growth from $0.53 to the current $0.25 monthly rate.

Shareholders can receive payments in cash or opt for shares through the company's dividend reinvestment plan (DRIP), with the share price calculated at 95% of the average market price over the ten trading days preceding payment.

Positive

• Consistent monthly dividend payments of $0.25 per share
• Attractive annualized dividend yield of 12.2%
• Historical trend shows steady dividend growth since 2023
• Multiple funding sources and permanent capital base
• Manages significant assets including $500M CLO fund and co-manages $400M JV CLO fund

Negative

• No special dividend declared for Q3 2026, unlike Q3 2025 which included $0.35 special dividend
• Potential risks from market changes, economic downturn, and interest rate volatility
• Exposure to supply chain constraints and inflation impacts on portfolio companies

Insights

Financial Analyst specializing in Business Development Companies (BDCs)

Saratoga Investment maintains consistent quarterly dividend of $0.75, yielding 12.2% - continuing stable shareholder returns despite no increase from prior quarters.

Saratoga Investment Corp (SAR) has declared an aggregate quarterly dividend of $0.75 per share for Q3 fiscal 2026, to be paid in three monthly installments of $0.25 each. This declaration maintains the same dividend level that has been in place throughout fiscal 2026. At the current share price of $24.54, this represents an annualized yield of 12.2%, which is notably attractive in the current market environment.

Looking at SAR's dividend history reveals an important pattern: while the company maintained quarterly dividend growth from fiscal 2023 through fiscal 2025 (from $0.53 to $0.74 per quarter), it has shifted to a monthly payment structure in fiscal 2026 at a fixed rate of $0.25 per month. This represents a yearly total of $3.00 for fiscal 2026 compared to $3.31 in fiscal 2025 (which included a special dividend of $0.35). When excluding that special dividend, the base annual payout has actually increased from $2.96 to $3.00.

The company's ability to maintain this dividend level is supported by its diverse funding sources and permanent capital base. SAR operates with two active SBIC-licensed subsidiaries, manages a $500 million CLO fund, and co-manages a joint venture fund with a $400 million CLO fund. This diversified structure provides stability for dividend coverage.

For income-focused investors, the consistency of SAR's dividend policy is reassuring. The transition to monthly dividends also offers more frequent income streams compared to the previous quarterly schedule, which may appeal to investors seeking regular cash flow. The 12.2% yield positions SAR competitively within the BDC sector, where yields typically range from 8% to 12%.

NEW YORK, Sept. 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 third quarter of fiscal 2026, declaring the following three monthly dividends for the quarter ended November 30, 2025:

Month	Amount per Share	Record Date	Payment Date
September 2025	$0.25	October 7, 2025	October 23, 2025
October 2025	$0.25	November 4, 2025	November 20, 2025
November 2025	$0.25	December 2, 2025	December 18, 2025

“Our board of directors approved an aggregated dividend for the third 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 12.2% dividend yield based on Saratoga’s recent stock price of $24.54 per share on September 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.

These are the third group of dividends declared for fiscal year 2026.

Historical Dividend Distributions

Period (Fiscal Year ends Feb)	Base Dividend Per Share	Special Dividend Per Share	Total Dividend Per Share
Fiscal Q3 2026 (November 2025)	$0.25	-	$0.25
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
Total Year Fiscal 2026	$2.25	-	$2.25
Fiscal Q4 2025	$0.74	-	$0.74
Fiscal Q3 2025	$0.74	$0.35	$1.09
Fiscal Q2 2025	$0.74	-	$0.74
Fiscal Q1 2025	$0.74	-	$0.74
Full Year Fiscal 2025	$2.96	$0.35	$3.31
Fiscal Q4 2024	$0.73	-	$0.73
Fiscal Q3 2024	$0.72	-	$0.72
Fiscal Q2 2024	$0.71	-	$0.71
Fiscal Q1 2023	$0.70	-	$0.70
Full Year Fiscal 2024	$2.86	-	$2.86
Fiscal Q4 2023	$0.69	-	$0.69
Fiscal Q3 2023	$0.68	-	$0.68
Fiscal Q2 2023	$0.54	-	$0.54
Fiscal Q1 2023	$0.53	-	$0.53
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 $500 million collateralized loan obligation (“CLO”) fund 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 E 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 is Saratoga Investment's (SAR) dividend payment for Q3 2026?

SAR declared a quarterly dividend of $0.75 per share, paid monthly at $0.25 per share for September, October, and November 2025.

What is the dividend yield for Saratoga Investment (SAR) stock?

Based on SAR's stock price of $24.54 as of September 9, 2025, the current dividend rate represents an annualized yield of 12.2%.

When are SAR's Q3 2026 dividend payment dates?

The dividends will be paid on October 23, November 20, and December 18, 2025, with respective record dates of October 7, November 4, and December 2, 2025.

How can shareholders receive SAR's dividend payments?

Shareholders can receive payments in cash or elect to receive shares through the dividend reinvestment plan (DRIP) at 95% of the average market price over the ten trading days before payment.

How has Saratoga Investment's dividend changed over time?

SAR's quarterly dividend has shown steady growth from $0.53 per share in Q1 2023 to the current $0.75 quarterly rate, with occasional special dividends like the $0.35 payment in Q3 2025.