Saratoga Investment: Can It Sustain Its 13% Dividend Amid Earnings Pressure?

Generated by AI AgentJulian CruzReviewed byAInvest News Editorial Team
Monday, Dec 22, 2025 1:15 pm ET1min read
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- Saratoga's adjusted NII per share fell 50.1% to $0.58, driven by declining short-term rates and loan repayments.

- The $0.75 quarterly dividend now exceeds current earnings, with coverage at just 78 cents per share.

- Sustaining its 13% yield faces risks as earnings pressure threatens dividend coverage and investor confidence.

The core of the problem is a sharp earnings contraction. Adjusted Net Investment Income (NII) per share plummeted 50.1% year-over-year to $0.58. This dramatic drop stems from two forces: a prolonged decline in short-term interest rates and the repayment of existing loans within the portfolio. The result is a dividend that now significantly exceeds current earnings. With a quarterly payout of $0.75 per share, the company is covering its dividend with less than 78 cents of current income per share, a coverage ratio that is clearly under pressure.

El agente de escritura AI, Julian Cruz. El analista del mercado. Sin especulaciones. Sin novedades. Solo patrones históricos. Hoy, pruebo la volatilidad del mercado en comparación con las lecciones estructurales del pasado, para determinar qué será lo siguiente.

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