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

Saratoga Investment Corp (NYSE:SAR) announced a monthly dividend on Tuesday, March 17th. Shareholders of record on Thursday, June 4th will be given a dividend of 0.25 per share by the financial services provider on Tuesday, June 23rd. This represents a c) annualized dividend and a yield of 13.3%. The ex-dividend date of this dividend is Thursday, June 4th.

Saratoga Investment has raised its dividend payment by an average of 0.1%annually over the last three years. Saratoga Investment has a 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 fall. Equities analysts expect Saratoga Investment to earn $2.98 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 100.7%.

Saratoga Investment Stock Performance

SAR opened at $22.50 on Wednesday. The company has a current ratio of 0.25, a quick ratio of 0.25 and a debt-to-equity ratio of 0.17. Saratoga Investment has a 12-month low of $21.10 and a 12-month high of $25.64. The firm has a 50 day moving average of $23.23 and a two-hundred day moving average of $23.20. The firm has a market capitalization of $364.03 million, a PE ratio of 9.22 and a beta of 0.55.

Saratoga Investment (NYSE:SAR) last released its quarterly earnings data on Wednesday, January 7th. The financial services provider reported $0.61 EPS for the quarter, beating the consensus estimate of $0.59 by $0.02. Saratoga Investment had a net margin of 30.61% and a return on equity of 9.19%. The business had revenue of $23.41 million for the quarter, compared to the consensus estimate of $31.35 million. On average, analysts anticipate that Saratoga Investment will post 3.93 EPS for the current year.

Hedge Funds Weigh In On Saratoga Investment

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lido Advisors LLC grew its position in shares of Saratoga Investment by 0.6% in the fourth quarter. Lido Advisors LLC now owns 199,138 shares of the financial services provider’s stock valued at $4,855,000 after purchasing an additional 1,265 shares during the period. Private Advisor Group LLC lifted its stake in Saratoga Investment by 3.2% in the 4th quarter. Private Advisor Group LLC now owns 163,359 shares of the financial services provider’s stock valued at $3,769,000 after buying an additional 5,073 shares in the last quarter. Closed End Fund Advisors Inc. acquired a new stake in Saratoga Investment in the 4th quarter worth about $3,680,000. Advisors Asset Management Inc. increased its stake in Saratoga Investment by 9.8% during the 3rd quarter. Advisors Asset Management Inc. now owns 115,641 shares of the financial services provider’s stock worth $2,820,000 after buying an additional 10,356 shares in the last quarter. Finally, LPL Financial LLC raised its holdings in shares of Saratoga Investment by 4.6% during the fourth quarter. LPL Financial LLC now owns 113,727 shares of the financial services provider’s stock valued at $2,624,000 after acquiring an additional 4,998 shares during the last quarter. 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.