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SAR

SARATOGA INVESTMENT CORP.
7 filings tracked
financialsasset managementSMALL ($300M-2B)

Company Intelligence Hub

Filing history, signal momentum, and bull/bear evolution

Chronological Filing Evolution (Click to filter / toggle)

Thesis (Bull Case Evolution)

Saratoga Investment Corp. has engineered a formidable balance sheet designed to thrive in volatile interest rate environments.…

Bullish Outlook

Antithesis (Bear Case / Structural Risks)

Despite the narrative of a fortress, Saratoga's financial health reveals significant fractures. The most glaring red flag is a dividend payout ratio of 161%, where the annual distribution far exceeds the NII per share.…

Risk Factors

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Synthesis (Verdict & Resolution)

Saratoga Investment Corp. presents a classic high-risk, high-reward BDC profile, where the trade-off lies between an attractive current yield and significant structural fragility. The filing confirms a successful effort to extend debt maturities and leverage the SBA's low-cost funding, yet these wins are offset by a dividend that exceeds earnings and a CLO position that offers no downside protection. Investors are essentially betting on the quality of the middle-market loan portfolio to withstand a higher-for-longer rate environment without a spike in defaults. If the portfolio remains stable, the NAV discount may normalize and the yield will remain attractive. However, the lack of a cash-flow cushion for the dividend and the zero-value CLO equity mean that any systemic credit shock would likely lead to a rapid and severe correction in both the share price and the distribution policy.

Selected Quarter

Core Takeaway

SAR is trading at a discount to NAV while paying a massive yield, but the dividend is currently unfunded by NII, creating a high-stakes gamble on portfolio stability.

Investor Lens

The trade-off between the immediate 15.8% cash yield and the risk of a sudden dividend cut or NAV write-down from CLO defaults.

Watch Next

The upcoming $75 million debt maturity wall and quarterly NII trends relative to the $3.74 annual dividend.

View Full SEC Report

Signal Momentum Chart

Quarterly net bull/bear signal ratio. Click nodes to select a quarter.

BULLISH (+1.0)NEUTRAL (0.0)BEARISH (-1.0)+0.13Q2 '26 (10-K)

Signal Timeline

Active Filters:Quarter: Q2 '26 (10-K)
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%
bearishMay 5

Dividend payout ratio of 161% indicates unsustainable distribution relative to NII.

dividend change
70%
bullishMay 5

Successfully extended debt maturities and utilized low-cost SBA debentures.

debt restructure
60%
bullishMay 5

98.8% floating-rate portfolio provides significant upside to NII as rates rise.

margin expansion
50%

Filing History

10-KMay 5, 2026
Expand Sequence

Saratoga Investment Corp. presents a classic high-risk, high-reward BDC profile, where the trade-off lies between an attractive current yield and significant structural fragility. The filing confirms a successful effort to extend debt maturities and leverage the SBA's low-cost funding, yet these wins are offset by a dividend that exceeds earnings and a CLO position that offers no downside protection. Investors are essentially betting on the quality of the middle-market loan portfolio to withstand a higher-for-longer rate environment without a spike in defaults. If the portfolio remains stable, the NAV discount may normalize and the yield will remain attractive. However, the lack of a cash-flow cushion for the dividend and the zero-value CLO equity mean that any systemic credit shock would likely lead to a rapid and severe correction in both the share price and the distribution policy.

Disclaimer: The synthesis provided is generated by AI models and should not be construed as investment advice. Analysis is based solely on regulatory data present at the time of publication. Consult a financial advisor for specific investment strategies.