Saratoga Investment's (SAR) Strategy for Maintaining One of the Highest Dividend Payouts

Saratoga Investment Corp. (NYSE:SAR) is included among the 10 Stocks with Highest Dividend to Buy Right Now.

The company reported strong earnings in fiscal Q1 2026. It posted a 17.9% quarter-over-quarter increase in adjusted net investment income (NII) per share, along with continued growth in net asset value (NAV) and a return on equity that surpassed the industry average. The quarter also included two new portfolio company investments and steady performance from its core BDC portfolio, despite ongoing macroeconomic volatility.

Saratoga Investment Corp. (NYSE:SAR)’s adjusted NII of $0.66 per share for Q1 reflected the ongoing impact of declining short-term interest rates and narrower spreads over the past year on its predominantly floating-rate asset base. In addition, recent repayments contributed to a cash position of $224 million at the end of the quarter— capital that could be used for new investments or to pay down existing debt.

Saratoga Investment Corp. (NYSE:SAR) recently shared plans to shift its dividend payments from a quarterly to a monthly schedule. This move reflects its solid liquidity position, consistent asset quality, and proven success in long-term loan origination. The company currently offers a monthly dividend of $0.25 per share and has a dividend yield of 11.91%, as recorded on July 27. SAR is a reliable choice for income investors as the company has raised its payouts nearly every quarter since reinstating its dividend policy in 2020.

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Disclosure: None.