{"id":633,"date":"2016-12-13T16:11:57","date_gmt":"2016-12-13T16:11:57","guid":{"rendered":"http:\/\/henristeenkamp.com\/?p=633"},"modified":"2019-05-06T19:34:35","modified_gmt":"2019-05-06T19:34:35","slug":"saratoga-investment-corp-healthy-dividend-lots-of-dry-power","status":"publish","type":"post","link":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/saratoga-investment-corp-healthy-dividend-lots-of-dry-power\/","title":{"rendered":"Saratoga Investment Corp.: Healthy Dividend, Lots of Dry Powder"},"content":{"rendered":"<p><a href=\"http:\/\/seekingalpha.com\/article\/4029539-saratoga-cfo-healthy-dividend-lots-dry-powder\"><i>This post was featured on Seeking Alpha December 9th, 2016.\u00a0<\/i><\/a><\/p>\n<div class=\"p p1\" style=\"color: #000000\">\n<h2 class=\"title sum\" style=\"color: inherit\">Summary<\/h2>\n<div class=\"a-sum\">\n<ul>\n<li>After speaking with Saratoga\u2019s CFO earlier this week, we believe this BDC&#8217;s 9.2% dividend yield is healthy, and the company has lots of dry powder for continued growth.<\/li>\n<li>Despite Saratoga&#8217;s recent strong price appreciation year-to-date, it still enjoys an attractive valuation, several important competitive advantages, and less exposure to the big risks facing the BDC industry.<\/li>\n<li>According to Saratoga\u2019s CFO, Henri Steenkamp, &#8220;We&#8217;re not afraid to not grow in a quarter, our most important thing is not to sacrifice credit quality&#8221;.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div id=\"a-body\" style=\"color: #000000\">\n<p class=\"p p1\">After speaking with the Chief Financial Officer (Henri Steenkamp) of Saratoga Investment Corp. (NYSE:<a style=\"color: #024999\" title=\"Saratoga Investment Corp\" href=\"http:\/\/seekingalpha.com\/symbol\/SAR\">SAR<\/a>) for 40 minutes earlier this week, our main takeaway is that the 9.2% dividend yield of this small cap Business Development Company (BDC) is healthy (with room to grow) because the company continues to enjoy an attractive valuation (even after the shares&#8217; strong rally so far this year), several important competitive advantages (for example, access to plenty of low-cost capital, aka &#8220;dry powder&#8221;), and may actually be less impacted by some of the\u00a0<a style=\"color: #024999\" href=\"http:\/\/www.blueharbinger.com\/free-reports-1\/DayofWeek\/2016\/12\/9\/big-risks-facing-the-bdc-industry\" rel=\"nofollow\">big risks<\/a>\u00a0facing the BDC industry as a whole.<\/p>\n<p class=\"p p1\"><span class=\"image-enlargeable\"><a style=\"color: #024999\" href=\"https:\/\/staticseekingalpha.a.ssl.fastly.net\/uploads\/2016\/12\/9\/42083106-14812990562748427_origin.jpg\" rel=\"lightbox\" data-width=\"960\" data-height=\"636\" data-og-image-msn=\"true\" data-og-image-facebook=\"true\" data-og-image-linkdin=\"true\"><img decoding=\"async\" src=\"https:\/\/staticseekingalpha.a.ssl.fastly.net\/uploads\/2016\/12\/9\/42083106-14812990562748427.jpg\" alt=\"\" hspace=\"6\" vspace=\"6\" data-width=\"640\" data-height=\"424\" data-og-image-msn=\"true\" data-og-image-facebook=\"true\" data-og-image-linkdin=\"true\" \/><\/a><\/span><\/p>\n<p class=\"p p1\"><strong>Overview<\/strong><\/p>\n<p class=\"p p1\">Saratoga Investment Corp. is a publicly traded BDC providing financing solutions to lower middle market companies through its SBIC-licensed subsidiary and a $300 million Collateralized Loan Obligation (CLO) fund. As the following chart shows, Saratoga&#8217;s portfolio is composed mainly of first and second liens, and the yields on these financing arrangements are significant (this is how Saratoga supports its healthy dividend).<\/p>\n<p class=\"p p1\"><img decoding=\"async\" src=\"https:\/\/staticseekingalpha.a.ssl.fastly.net\/uploads\/2016\/12\/9\/42083106-14812983096798544.png\" alt=\"\" hspace=\"6\" vspace=\"6\" data-width=\"598\" data-height=\"304\" data-og-image-msn=\"true\" data-og-image-facebook=\"false\" data-og-image-linkdin=\"true\" \/><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This post was featured on Seeking Alpha December 9th, 2016.\u00a0 Summary After speaking with Saratoga\u2019s CFO earlier this week, we believe this BDC&#8217;s 9.2% dividend yield is healthy, and the company has lots of dry powder for continued growth. Despite Saratoga&#8217;s recent strong price appreciation year-to-date, it still enjoys an attractive valuation, several important competitive [&hellip;]<\/p>\n","protected":false},"author":1176,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[2,3,10],"tags":[110,113],"class_list":["post-633","post","type-post","status-publish","format-standard","hentry","category-bdcs","category-blog","category-saratoga-press-releases","tag-saratoga","tag-saratoga-investment-corp"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/users\/1176"}],"replies":[{"embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/comments?post=633"}],"version-history":[{"count":0,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/posts\/633\/revisions"}],"wp:attachment":[{"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/media?parent=633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/categories?post=633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ragnarok-ms.us\/henristeenkamp-com\/wp-json\/wp\/v2\/tags?post=633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}