Saratoga Investment Corp (SAR) CFO: Healthy Dividend, Lots Of Dry Powder

The relatively large supplemental dividend is a testament to the strength of Saratoga’s business, its conservative dividend policy, and a signal of more potential dividend increases ahead. For reference, this next chart shows Saratoga’s strong dividend coverage ratio relative to other BDCs.

Valuation:

From a valuation standpoint, Saratoga currently trades at a discount to its net asset value (NAV). For some perspective, the following table includes Saratoga’s price-to-book ratio (+0.9) relative to other BDCs.

Another important metric to consider is Saratoga’s Net Investment Income (NII) as shown in the following chart.