PNNT vs SAR: Which BDC is the Better Dividend Buy?
A side-by-side comparison of PennantPark Investment Corporation (PNNT) and Saratoga Investment Corp. (SAR) — dividend yield, NAV premium/discount, market cap, and price-to-NAV valuation.
Ready to Trade PNNT or SAR?
Public Disclosure: We maintain material affiliate partnerships with the trading platforms listed below and may receive compensation if you open an account through our tracking routes.
Compare BDC dividend yields side-by-side, then open a brokerage account that supports fractional shares and real-time distribution tracking.
PNNT vs SAR: Key Metrics Head-to-Head
| Metric | PNNT | SAR | Edge |
|---|---|---|---|
| Dividend Yield | 28.66% | 16.57% | PNNT |
| Premium / Discount to NAV | -52.82% | -30.21% | SAR |
| Market Capitalization | $0.3B | $0.4B | SAR |
| Trailing Stock Price | $3.35 | $19.61 | — |
| Net Asset Value (NAV) | $7.1 | $28.1 | — |
| Price vs NAV (Valuation) | Discount | Discount | SAR |
| Dividend Frequency | Quarterly | Quarterly | — |
| Leverage Ratio | 1.26x | 1.24x | SAR |
About PNNT — PennantPark Investment Corporation
PennantPark Investment Corporation is a BDC that originates and acquires senior secured loans, mezzanine debt, and equity investments in middle-market companies. PNNT, the predecessor vehicle to PFLT, retains a diversified portfolio that includes second lien loans, subordinated debt, and selected equity co-investments. The BDC is externally managed by PennantPark Investment Advisers and targets companies with EBITDA between $5 million and $25 million.
About SAR — Saratoga Investment Corp.
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.
How to Choose Between PNNT and SAR
When comparing two Business Development Companies, the right choice depends on your income objective:
- Dividend yield matters most for immediate income — the higher yielder wins on cash flow, but make sure it's covered by investment income.
- NAV premium/discount matters for valuation — a discount to NAV implies you're buying assets below their accounting value, a premium implies the market expects above-average growth.
- Market cap reflects liquidity and scale — larger BDCs typically have lower borrowing costs and better portfolio diversification.
- Leverage cuts both ways — it amplifies dividend yield but increases sensitivity to credit defaults and interest rate moves.
Both PNNT and SAR are Regulated Investment Company (RIC)-structured BDCs required to distribute at least 90% of taxable income to shareholders, which is what produces their above-average dividend yields. Use the comparison table above as a starting point, then read each full profile before making an investment decision.
Affiliate Disclosure: BusinessDevelopmentCompanies.com participates in affiliate marketing programs. We may earn a commission or referral fee when visitors click links to institutional partner platforms like eToro or Interactive Brokers. This financial support enables us to maintain real-time programmatic valuation data across our platform. Links to brokerages on this page carry the rel="sponsored nofollow noopener" attribute.
Not Investment Advice: This comparison is for educational and informational purposes only. Nothing here constitutes a recommendation, solicitation, or investment advice to buy or sell any security. Past performance does not guarantee future results. Always conduct your own due diligence and consult a licensed financial advisor. Read our full Editorial Policy and Terms of Service.