How Do You Eat Cake?

Sometimes I take a small slice of cake at a birthday party. But that doesn’t mean I won’t have another slice after that piece is gone. In a sense, Saratoga Investment Corp is switching from a big piece of dividend cake payable in March ($0.74 per share) to three smaller $0.25 per share monthly dividends to be paid in April, May and June. A quick look at those numbers and you will see that the real three-month payout is $0.75/share. That isn’t a huge increase, but I do like monthly dividends.

The SAR Announcement

SAR’s Board transitioned the dividend payment schedule from quarterly to monthly beginning with the month ended March 31, the company increased its quarterly dividend by $0.01 per share to $0.75 per share in aggregate for the first quarter of fiscal 2026. The company will pay a monthly dividend of $0.25 per share. (Payable April 24; for shareholders of record April 8; ex-div April 8. Payable May 22; for shareholders of record May 6; ex-div May 6. Payable June 24; for shareholders of record June 5; ex-div June 5.) You have to own the shares before the Ex-Dividend date if you want to receive the dividend.

SAR is a Diversified BDC

The following image shows some of SAR’s investments. This information is available on SAR’s website.

SAR’s Total 10-Year Return

If you combine SAR’s dividend payout and share price appreciation, you will find the total return for an investment is SAR for the last ten years has grown by 326.43% according to Seeking Alpha. To state that another way, your average annual return would have been more than 30%.

We have received $12,434 in dividends from this investment since 2020. I have been gradually adding shares since then.

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