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

Saratoga Investment Corp. (SAR) announced a base quarterly dividend of $0.75 per share for Q2 fiscal 2026, payable in monthly installments of $0.25 per share in June, July, and August 2025. Based on the company's share price of $24.08 on June 10, 2025, the annualized dividend rate implies a yield of 12.5%, reflecting the company's commitment to delivering consistent returns to shareholders.

Analysis

Saratoga Investment Corp. (NYSE:SAR) has announced a base quarterly dividend of $0.75 per share for the second quarter of fiscal 2026, to be distributed in three monthly payments of $0.25 per share for June, July, and August 2025. This declaration maintains the dividend rate established in the first quarter of fiscal 2026, which itself represented a slight increase from the $0.74 base quarterly dividend paid throughout fiscal year 2025. Based on Saratoga's stock price of $24.08 as of June 10, 2025, the annualized dividend of $3.00 per share implies a substantial yield of 12.5%. The company's CEO, Christian L. Oberbeck, emphasized the board's satisfaction in continuing to deliver attractive returns through solid and consistent dividends, underscoring a history of gradually increasing base distributions, rising from $2.44 per share in fiscal 2023 to an annualized $3.00 per share for fiscal 2026 so far. Shareholders have the option to receive dividends in cash or common stock via the company's dividend reinvestment plan (DRIP), with shares issued under the DRIP priced at 95% of a 10-day trailing average market price. This announcement, viewed with strongly positive sentiment (0.7 score), reflects Saratoga's ongoing commitment to capital returns, a key aspect for this business development company focused on U.S. middle-market lending and managing CLO funds.

Key Decisions for Investors

• Income-seeking investors may find the 12.5% annualized dividend yield attractive, supported by Saratoga's consistent dividend payments and recent modest increase in the base quarterly rate to $0.75, which is maintained from Q1 FY2026.
• Consider utilizing the dividend reinvestment plan (DRIP) if bullish on Saratoga's long-term prospects, as it offers shares at a 5% discount to the recent market price, potentially accelerating wealth compounding.
• Despite the positive dividend news and strong sentiment, investors should monitor the underlying credit quality of Saratoga's middle-market loan portfolio and the broader BDC sector risks, including interest rate sensitivity and economic conditions, as highlighted in the company's forward-looking statements.