BXSL - Saratoga Investment Corp: The Good The Bad The Ugly

2024-07-05 08:00:00 ET

Summary

• Saratoga Investment Corp has underperformed peers due to a rise in non-accruals and declining financials.
• Despite challenges, SAR offers an attractive double-digit yield, and also trades closer to its 52-week low and at a discount relative to peers.
• While SAR may be a good short-term income investment, there are better options in the sector for those seeking attractive dividends with less risk.
• The good is Saratoga Investment out-earned its dividend by $0.21 and recently raised their dividend to $0.73.
• Smaller-cap peers Carlyle Secured Lending and Crescent Capital saw their NAVs rise quarter-over-quarter, while Saratoga Investment saw theirs declined by $0.53 over the same period.

Introduction

When it comes to investing, your mindset is a powerful tool that will either hinder you or help you. Spending 21 years in the military, I've learned that your mindset can literally be the difference between life & death. In investing, of course, it's not that serious. But I say that to say there's something good in any and everything. There's also something bad in everything, depending on how you look at it....

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