Saratoga Investment Corp. (SAR) — Dividend Yield, NAV & Valuation Analysis
SAR · NYSE
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Overview
Saratoga Investment Corp. is an externally managed BDC that provides senior secured debt, mezzanine debt, and equity co-investments to U.S. middle-market companies. SAR targets disciplined underwriting with a strong emphasis on collateralization and floating-rate loan structures. The portfolio is concentrated in technology, healthcare, and business services sectors, and the BDC is known for maintaining a high dividend payout ratio.
Key Metrics
| Metric | Value |
|---|---|
| 1-Year Total Return | 10.5% |
| 3-Year Total Return | 26.2% |
| 5-Year Total Return | 38.5% |
| Expense Ratio | 8.9% |
| Leverage Ratio | 1.24x |
| Portfolio Companies | 55 |
| Total Assets | $0.5B |
Discount / Premium to NAV
| Stock Price | $21.4 |
| NAV per Share | $28.1 |
| Premium / (Discount) to NAV | -23.8% |
| Implied per-share NAV gap | $6.7 |
The premium / discount to NAV compares the current stock price to the per-share net asset value of Saratoga Investment Corp.'s investment portfolio. A negative reading (a discount) means the market is pricing SAR below the value of its underlying assets and is one of the most-watched valuation metrics for any BDC. A positive reading (a premium) means the market is paying a premium over the stated NAV, often reflecting confidence in future dividend coverage and portfolio credit quality. Saratoga Investment Corp. currently trades at a -23.8% discount to NAV.
Investment Strategy
Saratoga Investment Corp. focuses on senior secured loans, mezzanine debt, equity co-investments in the technology, healthcare, business services, manufacturing sectors. The company targets lower middle-market companies and maintains a portfolio of 55 investments totaling $0.5B in assets.
Management
CEO: Christian L. Oberbeck | Employees: 25
Suitability
SAR is suitable for income-focused investors seeking quarterly dividend income with a 14% yield. The BDC's focus on senior secured loans provides portfolio characteristics. Investors should consider their risk tolerance and investment objectives before investing.