Saratoga Investment Corp. (SAR) — Dividend Yield, NAV & Valuation Analysis

SAR · NYSE

$21.4 Stock Price
14% Dividend Yield
$0.4B Market Cap
$28.1 NAV
-23.8% Premium / Discount
Quarterly Dividend Freq.
$3 Div. per Share/yr

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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

MetricValue
1-Year Total Return10.5%
3-Year Total Return26.2%
5-Year Total Return38.5%
Expense Ratio8.9%
Leverage Ratio1.24x
Portfolio Companies55
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.