Discover the Latest News: Saratoga Investment Corp. Raises Quarterly Dividend by $0.01 Per Share
Saratoga Investment Corp. (NYSE: SAR), a reputable business development company, has revealed a remarkable increase in its quarterly dividend. The Board of Directors has declared a dividend of $0.71 per share for the fiscal second quarter that concluded on August 31, 2023. This announcement marks the fourteenth consecutive quarterly dividend increase, showcasing the company's commitment to its shareholders.
The dividend increase is a result of Saratoga Investment's steadfast growth and its resilient performance in the face of shifting market dynamics. Christian L. Oberbeck, the Chairman and Chief Executive Officer of Saratoga Investment, emphasized the impact of rising interest rates on the company's floating rate assets, coupled with the consistent expansion of its portfolio. These factors have led to record earnings, allowing the company to deliver an enhanced dividend to its shareholders.
Shareholders will be pleased to note that the second quarter dividend of $0.71 per share represents an impressive year-over-year increase of approximately 31%. This upsurge highlights the company's dedication to generating value for its investors. By annualizing this dividend rate and considering the recent stock price of $26.57 per share on August 11, 2023, shareholders are looking at an enticing 10.7% dividend yield and a noteworthy 16.3% earnings yield.
This dividend increase is not an isolated event for Saratoga Investment. It's the second dividend declared within fiscal year 2024, with the preceding quarter seeing a dividend of $0.70 per share. Looking back at fiscal year 2023, the company consistently demonstrated its commitment to rewarding shareholders, declaring dividends of $0.69, $0.68, $0.54, and $0.53 per share for each quarter, respectively. The momentum carried on in fiscal years 2022 and 2021, with declared dividends of $2.45 and $1.23 per share.
Saratoga Investment is also providing its shareholders with flexibility in how they receive their dividends. Investors can choose between receiving cash or shares of common stock through the company's dividend reinvestment plan (DRIP). Those who hold their shares with a broker must indicate their preference to receive dividends in common stock before the record date. The number of common stock shares to be received will be determined based on the total dollar amount and the average market prices per share in the preceding ten trading days leading up to the payment date.
With the recent announcement of the fourteenth consecutive quarterly dividend increase, Saratoga Investment Corp. is solidifying its position as a company that values its shareholders and is dedicated to providing them with attractive returns. This move not only showcases the company's robust performance but also demonstrates its commitment to creating long-term value for its investors.
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