U.S. Global Investors Announces Continuation of Monthly GROW Dividends, Provides Update on Gold

Rhea-AI Summary

U.S. Global Investors, Inc. (NASDAQ: GROW) announces continued payment of monthly dividends and highlights positive gold performance.

Insights

Financial Analyst

The decision by U.S. Global Investors, Inc. to maintain its monthly dividend payments into the first quarter of 2024 reflects a commitment to providing consistent shareholder returns. The dividend yield of 3.23% at the current share price offers an attractive return, especially when compared to the traditional safe-haven asset, the 10-year Treasury note. The company's shareholder yield surpassing the yield on the 10-year Treasury is indicative of strong performance, particularly in a low interest rate environment.

Additionally, the company's focus on gold as a core investment asset is noteworthy given the precious metal's recent surge to over $2,000 an ounce, a sign of investor sentiment shifting towards safe-haven assets amidst geopolitical tensions and expectations of a shift in Federal Reserve policy. The inverse relationship between gold prices and Treasury yields highlights the company's strategic positioning to benefit from current market dynamics. The attention to macroeconomic indicators, such as the 10-year Treasury yield and inflation rates, underscores the company's proactive approach to asset management.

Industry Analyst

The emphasis on gold's performance by U.S. Global Investors, Inc. CEO Frank Holmes aligns with broader market observations that gold often acts as a hedge against inflation and economic uncertainty. The metal's rise above its 50-day moving average is traditionally seen as a positive trend among investors. The company's investment strategy appears to be well-aligned with current market trends, potentially positioning it favorably should the Federal Reserve's policy shift towards easing.

The mention of gold's all-time high price points to the company's expertise in recognizing and capitalizing on market trends. This could be a signal to investors of the firm's ability to navigate the commodities market, which might positively influence investor confidence in the company's management and investment strategies.

San Antonio, TX, Dec. 19, 2023 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, is pleased to announce that it will continue its payment of monthly dividends.

The Company’s Board of Directors (the “Board”) approved payment of the $0.0075 per share per month dividend beginning in January 2024 and continuing through March 2024. The record dates are January 8, February 12 and March 11, and the payment dates will be January 22, February 26 and March 25.

At the December 15, closing price of $2.79, the $0.0075 monthly dividend equals a 3.23% yield on an annualized basis. For the 12 months ended September 30, 2023, the Company’s shareholder yield was 6.84%, which was higher than the yield on the 10-year Treasury that same day.[1]

Gold's Surge Above $2,000 an Ounce as Interest Rates Fall

The Company would also like to take this opportunity to note the positive performance of gold, an important asset to many of the Company’s investments.

“Earlier this month, the yellow metal recorded a new all-time high intraday price of $2,146 per ounce on geopolitical tensions and growing hopes that the Federal Reserve is done hiking rates and will soon begin easing. As of December 18, 2023, gold was trading above its 50-day moving average, which we consider to be a bullish signal and which many trend investors follow,” says Frank Holmes, the Company’s CEO and Chief Investment Officer.

“As many readers are aware, the price of gold has historically shared an inverse relationship with Treasury yields. The yield on the 10-year Treasury note, now below its 200-day moving average, has decreased to approximately 3.9%, down from a multiyear high of approximately 5% observed in October. This decline is attributed to the ongoing decrease in the annual inflation rate and the increased probability that the Fed will begin reducing short-term interest rates instead of raising them.”

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About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides investment advisory and other services to U.S. Global Investors Funds and U.S. Global ETFs.

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The continuation of future cash dividends will be determined by U.S. Global’s board of directors, at its sole discretion, after review of the Company's financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the Company and general business conditions. The shareholder yield is a ratio that shows how much money the company is sending back to shareholders through a combination of dividends and share repurchases.

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[1] The Company computes shareholder yield by adding the percentage of change in shares outstanding to the dividend yield for the 12 months ending September 30, 2023. The Company did not have debt; therefore, no debt reduction was included.

Attachment

• Gold Price on an Upward Trajectory as Treasury Yields Fell Below Key Moving Average

FAQ

What is the company name and ticker symbol mentioned in the press release?

The press release mentions U.S. Global Investors, Inc. with the ticker symbol NASDAQ: GROW.

What is the dividend amount approved by the Board of Directors?

The Board approved payment of $0.0075 per share per month dividend beginning in January 2024 and continuing through March 2024.

What are the record dates and payment dates for the approved dividends?

The record dates are January 8, February 12, and March 11, and the payment dates will be January 22, February 26, and March 25.

What is the annualized yield of the monthly dividend at the December 15 closing price?

At the December 15 closing price of $2.79, the $0.0075 monthly dividend equals a 3.23% yield on an annualized basis.

What was the Company's shareholder yield for the 12 months ended September 30, 2023?

For the 12 months ended September 30, 2023, the Company’s shareholder yield was 6.84%, which was higher than the yield on the 10-year Treasury that same day.

What was the all-time high intraday price of gold recorded earlier this month?

Earlier this month, gold recorded a new all-time high intraday price of $2,146 per ounce.

What is the relationship between the price of gold and Treasury yields?

The price of gold has historically shared an inverse relationship with Treasury yields.