10 Extreme Dividend Stocks to Invest in Now

6. Saratoga Investment Corp. (NYSE:SAR)

Dividend Yield as of January 23: 11.78%

Saratoga Investment Corp. (NYSE:SAR) is an American capital market company that provides debt financing and equity capital to middle-market companies. The company recently announced that it is seeing early signs of a potential uptick in mergers and acquisitions within the lower middle market, highlighted by several repayments during the quarter and significant new originations. Consistent with previous quarters, its strong reputation and unique market position, along with the ongoing cultivation of sponsor relationships, continue to generate appealing investment opportunities from top-tier sponsors. In the past 12 months, the stock has surged by nearly 9%.

In fiscal Q3 2025, Saratoga Investment Corp. (NYSE:SAR) demonstrated solid performance, as highlighted by its strong key metrics. The company reported a quarterly return on equity (ROE) of 9.5% and a trailing twelve-month ROE of 9.2%. Additionally, its net asset value (NAV) increased by $2.8 million, rising from $372.1 million to $374.9 million. The company reported a total investment income of $35.88 million, which, though, fell by 1.27% from the same period last year, beat analysts’ estimates by $977,920.

Saratoga Investment Corp. (NYSE:SAR) has been growing its dividends for five consecutive years, which makes it one of the best dividend stocks on our list. The company currently offers a quarterly dividend of $0.74 per share and has a dividend yield of 11.78%, as recorded on January 23.

As per Insider Monkey’s database of Q3 2024, 3 hedge funds held stakes in Saratoga Investment Corp. (NYSE:SAR), the same as in the previous quarter. These stakes have a collective value of over $6.5 million. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.