Saratoga Investment Corp. Announces Quarterly Dividend of $0.74 per Share
This Dividend Represents an Increase of About 4.2%
Saratoga Investment Corp. (NYSE:SAR), a leading business development company, has announced a quarterly dividend of $0.74 per share for the fiscal second quarter. This reflects a notable increase of approximately 4.2% compared to the same quarter last year. The dividend is set to be paid, providing significant benefits to shareholders.
Strong Dividend Performance
Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment, noted that the recent performance and stability of their asset portfolio have enabled this substantial dividend increase. He emphasized that the company's ability to sustain a strong dividend illustrates its industry-leading yield and coverage, which ultimately enhances shareholder value and demonstrates effective financial management.
Historical Context of Dividends
This quarterly dividend marks the second one declared in the current fiscal year. Over the past two years, Saratoga has successfully raised its dividend by about 37%. The current dividend rate translates to an annualized yield of 13.0%, based on the latest stock price. This consistent dividend performance highlights the company’s dedication to delivering attractive returns for its investors.
Shareholder Payment Options
Shareholders can choose to receive their dividends in cash or as common stock through the Company’s dividend reinvestment plan (DRIP). This flexibility allows investors to select options that best fit their investment strategies. Shareholders should notify their brokers of their preferences to ensure their choices are processed before the record date.
About Saratoga Investment Corp.
Saratoga Investment Corp. is a specialty finance organization that provides tailored financing solutions to middle-market businesses throughout the U.S. Its investment strategy mainly involves senior and unitranche leveraged loans and mezzanine debt. The company aims to promote growth through strategic acquisitions, recapitalizations, and collaborations with management teams and financial sponsors.
Focus on Financial Growth
The company strives to achieve attractive risk-adjusted returns through a mix of debt and equity investments. As a business development company under the Investment Company Act of 1940, and with management provided by Saratoga Investment Advisors, it concentrates on credit-driven strategies. The diverse nature of its investment portfolio further bolsters the potential for long-term capital appreciation.
Funding Structure and Management
Saratoga has established a strong funding base, managing a $650 million collateralized loan obligation (CLO) fund and a joint venture fund with significant investments. The company holds considerable stakes in both the CLO and the joint venture, showcasing its varied funding sources and management approach.
Contact Information
For further inquiries, Saratoga Investment Corporation can be contacted at their office located at 535 Madison Avenue, 4th Floor, New York, NY 10022. Key contacts include: Henri Steenkamp, Chief Financial Officer, at 212-906-7800 and Lena Cati from The Equity Group Inc. at 212-836-9611.
Frequently Asked Questions
What is the amount of the declared dividend?
Saratoga Investment Corp. has declared a quarterly dividend of $0.74 per share.
When will the dividend be paid?
The dividend is scheduled to be paid to shareholders on a specific date following the record date.
What percentage increase does the new dividend reflect?
The new dividend represents a 4.2% increase compared to the same quarter of the previous fiscal year.
Can shareholders choose how to receive their dividends?
Yes, shareholders can opt to receive their dividends in cash or as shares of common stock through the dividend reinvestment plan.
What investment strategies does Saratoga Investment Corp. pursue?
Saratoga focuses on providing financing through senior and unitranche leveraged loans, mezzanine debt, and equity to middle-market businesses, targeting growth and attractive returns.
