Saratoga Investment (SAR) Raises Quarterly Dividend 2.5% to $0.41; 10.5% Yield

March 31, 2016 5:01 PM EDT

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Saratoga Investment (NYSE: SAR) declared a quarterly dividend of $0.41 per share, or $1.64 annualized. This is a 2.5% increase from the prior dividend of $0.40.

The dividend will be payable on April 27, 2016, to stockholders of record on April 15, 2016, with an ex-dividend date of April 13, 2016.

The annual yield on the dividend is 10.5 percent.

The Company also further exercised its share repurchase plan during this quarter. In fiscal year 2015, the Company announced the approval of an open market share repurchase plan that allows it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published financial statements. Last quarter, this share repurchase plan was extended for another year, and increased to 400,000 shares through October 2016. As of March 30, 2016, Saratoga repurchased 37,920 shares at a weighted average price of $14.10 per share under this plan.

"In light of the volatility and challenges facing the BDC market, we are very pleased to continue paying an increasing and healthy quarterly dividend," said Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment. "Our ability to over-earn our dividend results from the stable and growing income yield generated from our prudently increasing and high quality portfolio. During this past quarter, we have repurchased 37,920 shares demonstrating our commitment to building shareholder value while maintaining adequate capital to leverage market opportunities."

Mike Grisius, President and Chief Investment Officer, said, "Our financial performance rests on a new deal pipeline that remains productive despite market tightening. We enjoy strategic flexibility in how we source and deploy capital and feel well positioned to face current market conditions."

For a dividend history and other dividend-related data on Saratoga Investment (SAR) click here.

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