Saratoga Investment Corp.
SARFinancial Services · Stock · monthly payer
Forward Yield
16.36%
Annual Dividend
$3.00
Payout Ratio
306%
5-Yr Growth
-11.4%
Ex-Date
Sep 3, 2026
Frequency
Monthly
Summary
As of September 2026, Saratoga Investment Corp. (SAR) yields 16.36% ($3.00 per share annually), with a blended fair-value estimate of $32.14 — +76% upside, so it screens as undervalued. Dividend safety grade: D (47/100).
Is SAR a good dividend stock?
MixedSaratoga Investment Corp. (SAR) pays a monthly dividend yielding 16.36% ($3.00/yr), with 0 years of growth and a dividend-safety grade of D. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2025
- Elevated payout ratio (306%)
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
- Below-average dividend safety score
Key Data
- Dividend Yield
- 16.36%
- Payout Ratio
- 306%
- Annual Dividend
- $3.00
- 5-Yr Avg Growth
- -11.4%
- Ex-Dividend Date
- Sep 3, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.59
- Market Cap
- $285.8M
- P/E Ratio
- 18.7
- 5-Yr Total Return
- -37%
- 52-Week Range
- $17.34 – $25.64
- Dividend Safety
- D · 47/100
- Ever Cut?
- Yes (2025)
Frequently Asked Questions
SAR Price — Last 12 Months
Daily close
Price Return
1 Year
-25%
3 Years
-29%
5 Years
-37%
52-Week Range
$17.34 – $25.64
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is SAR worth?
Undervaluedlow confidenceOur blended fair-value estimate for Saratoga Investment Corp. is $32.14 per share, versus a market price of $18.24. That implies 76% of upside — a margin of safety of about 43%.
Fair Value
$32.14
Current Price
$18.24
Upside
+76%
Margin of Safety
43%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -5.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.3% discount rate (CAPM), -5.0% stage-1 growth, 2.5% terminal growth, $0.98 EPS, $3.00 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
SAR Dividend Safety Score
Risky
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 3, 2026 | — | $0.2500 | regular |
| Aug 5, 2026 | — | $0.2500 | regular |
| Jul 6, 2026 | — | $0.2500 | regular |
| Jun 4, 2026 | — | $0.2500 | regular |
| May 5, 2026 | — | $0.2500 | regular |
| Apr 7, 2026 | — | $0.2500 | regular |
| Mar 3, 2026 | — | $0.2500 | regular |
| Feb 4, 2026 | — | $0.2500 | regular |
| Jan 6, 2026 | — | $0.2500 | regular |
| Dec 2, 2025 | — | $0.5000 | regular |
| Nov 4, 2025 | — | $0.2500 | regular |
| Oct 7, 2025 | — | $0.2500 | regular |
| Sep 4, 2025 | — | $0.2500 | regular |
| Aug 6, 2025 | — | $0.2500 | regular |
Income Calculator
At $3.00 / yr per share
