Is This 12% Yield Safe?

Safety Net says... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

Loyal reader since June 2022

View in browser SPONSORED Trump Says Drill Baby Drill. Click here for the details on #1 Oil Play of 2025. (Hint it's not a stock, bond or private company.) SAFETY NET Can This 12% Yielder Salvage its Dividend Safety Rating? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club You may not have heard of Saratoga Investment Corp (NYSE: SAR), a small cap business development company (BDC), but its shareholders undoubtedly love its 12% yield. But will that 12% yield stick around long enough to put the company on more investors' radar? The New York-based BDC lends money to businesses that aren't able to get bank loans. It lends to businesses in a variety of sectors including healthcare, technology, consumer services, and more. Because it's a BDC, the measure of cash flow that we use is net interest income, or NII. Its latest fiscal year, which ended in February, saw a slight setback when NII declined 7%. That was after several years of strong growth. SPONSORED 4,735% Revenue Surge: The Linchpin of Nvidia's AI Dominance? As Nvidia's new Blackwell chip sparks an AI revolution, one company is poised to skyrocket. This unsung hero's revenue could soar up to 4,735% in the next 12 months as tech titans line up to secure their groundbreaking technology. Early investors could see life-changing gains as this story unfolds. Don't miss your chance to ride the AI mega-trend. In the current fiscal year, NII is forecast to grow 19%. Even though that's a positive, the Safety Net Model is a stern taskmaster and doesn't stand for disappointment. The decline in the last fiscal year costs Saratoga a one-grade penalty. View larger image   In the last fiscal year, Saratoga paid shareholders $40.7 million in dividends for a payout ratio of 77%. This fiscal year, the payout ratio is forecast to dip to 74%. BDCs are only penalized on payout ratios above 100%. So Saratoga's payout ratio is healthy. Its dividend history is decent. The only hiccup was in 2020, during the pandemic, when it reduced the dividend from $0.56 to $0.40. Other than that, not including special dividends, the BDC has raised the payout every year. So far, Saratoga's dividend safety looks like a toss up. Is its healthy payout ratio and dividend history enough to cancel out the dip in NII for fiscal year 2025? Find Out Here BUILD AND PROTECT YOUR WEALTH Why They're Ditching the Mag 7 and Quietly Pouring Billions Into Unknown AI Stocks! Forget Diversification. Discover Why 99% of Stocks Are Deadweight and How Focusing on 1 Ticker Holds the Real Key to Massive Profits. [Watch Video] The "TACO" Trading Strategy for Trump's Tariffs MORE FROM WEALTHY RETIREMENT Can Saratoga Investment Corp. Maintain Its 12% Yield? Shock and Awe: The Next Stage of Trump's Master Plan Compound Interest: The Heavyweight Strategy for Long-Term Wealth The New Era of Dividend Investing Is Here Facebook LinkedIn Email Share Push Alert SPONSORED PROOF: New One Ticker (Weekly) Payouts A multimillionaire stock trader's research explains how focusing on just one ticker every week has generated payouts up to a rare 2,614% in under 11 days... AND he's brought proof to show the world! SEE THE PROOF You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. Privacy Policy | Whitelist Wealthy Retirement | Unsubscribe © 2025 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 866.237.0436 | International: +1.443.353.4540 Oxfordclub.com Nothing published by The Oxford Club should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, LLC, 105 West Monument Street, Baltimore, MD 21201.