U.S. Global Investors Maintains Monthly Dividends, Reports Surge in Share Buybacks Amid Record Gold Prices and Optimistic Global Airlines Outlook

Rhea-AI Summary

U.S. Global Investors (NASDAQ: GROW) announces the continuation of its monthly dividends at $0.0075 per share from July to September 2024. The annualized yield is 3.46% based on the June 12, 2024 closing price of $2.60. The company has also significantly increased its share buybacks, purchasing 59,891 shares in May 2024, a 45% rise from the previous year. This move underscores the firm's commitment to shareholder value. Additionally, the surge in gold prices has boosted interest in U.S. Global Investors' gold-themed products. The International Air Transport Association (IATA) has upgraded profitability projections for airlines in 2024 to $30.5 billion, benefiting the company's airline-focused ETF. Elliot Management has also invested nearly $2 billion in Southwest Airlines, a top holding in U.S. Global Investors' ETF.

Positive

• Continued monthly dividends at $0.0075 per share.
• Annualized dividend yield of 3.46% based on June 12, 2024 closing price.
• Share buybacks up 45% in May 2024 compared to the previous year.
• Surge in gold prices increasing interest in gold-themed products.
• Upgraded profitability projections for airlines to $30.5 billion in 2024.
• Elliot Management's $2 billion investment in Southwest Airlines.

Negative

• The dividend yield of 3.46% may not be attractive for high-yield seeking investors.
• Share buybacks are dependent on the stock price being flat or down.

San Antonio, TX, June 14, 2024 (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 July 2024 and continuing through September 2024. The record dates are July 15, August 12 and September 16, and the payment dates will be July 29, August 26 and September 30.

The Company has paid a monthly dividend since June 2007, and at the June 12, 2024, closing price of $2.60, the $0.0075 monthly dividend equals a 3.46% yield on an annualized basis. The Company’s shareholder yield in May was 9.45%,[1] which exceeded the yields on the five-year and 10-year Treasury.

Share Buybacks Up 45% From Last Year

The Company is also pleased to announce that it repurchased 59,891 of its own shares in May 2024, at a net cost of approximately $160,000. This represents a substantial increase of approximately 45% from the number of shares purchased the same month a year earlier.

“We remain deeply committed to enhancing shareholder value,” says CEO and Chief Investment Officer Frank Holmes. “Our continued monthly dividend payments and increased share buybacks underscore our confidence in the company's financial health and our dedication to delivering consistent returns to our shareholders.”

The Company buys back its shares when the price is flat or down from the previous trading day. Warren Buffett is famous for highlighting the value proposition of buying back one’s own stock at “value-accretive prices.” Doing so, Buffett says, benefits all shareholders, not just the biggest holders. We agree.

All-Time High (ATH) Gold Prices Shine Light on Thematic Product Offerings

U.S. Global Investors is excited to witness the surge in gold prices thus far in 2024, particularly as first-movers in the gold fund space, and currently offering two mutual funds and one ETF focused on this niche area of the market. This uptrend in price has been reflected in increased interest in the Company’s gold-themed products, as well as its award-winning research and thought leadership, affirming the impact of our quantamental approach to the markets.  

Upgraded Profitability Projections for Airlines, Elliot Management Buys Into Southwest

The International Air Transport Association (IATA) significantly upgraded its profitability projections for airlines in 2024, which bodes well for the Company’s airlines-focused ETF. The trade group now expects net profits to reach $30.5 billion, an increase from $27.4 billion in 2023.

This surge in profitability is accompanied by record-high traveler numbers and revenues.

On Monday, June 10, Elliot Investment Management, a hedge fund led by billionaire Paul Singer, announced that it amassed a stake of almost $2 billion in Southwest Airlines, a top holding in the Company’s airlines ETF.

“I believe its important to follow the smart money,” said Frank Holmes. “This buy in by Elliot Management helps shine a light on an industry that has historically traded at a massive discount to the S&P 500.”

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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 Investors’ 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.

The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the press release were held by one or more of U.S. Global Investors Funds as of 3/31/2024: Southwest Airlines Co.

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[1] The Company calculates shareholder yield by adding cash dividends and net share repurchases, divided by market capitalization, for the 12 months ending May 31, 2024. The Company did not have debt; therefore, no debt reduction was included.

Attachment

• GROW's Shareholder Yield More Than Double the Yield on Government Bonds

FAQ

What is the dividend yield for GROW?

The annualized dividend yield for GROW is 3.46% based on the June 12, 2024 closing price.

How many shares did U.S. Global Investors buy back in May 2024?

U.S. Global Investors repurchased 59,891 shares in May 2024.

How much did U.S. Global Investors spend on share buybacks in May 2024?

The company spent approximately $160,000 on share buybacks in May 2024.

When will U.S. Global Investors pay dividends?

Dividends will be paid on July 29, August 26, and September 30, 2024.

What are the record dates for U.S. Global Investors' dividends?

The record dates are July 15, August 12, and September 16, 2024.

What is the impact of rising gold prices on U.S. Global Investors?

Rising gold prices have increased interest in U.S. Global Investors' gold-themed products.

What are the upgraded profitability projections for airlines in 2024?

The International Air Transport Association projects net profits of $30.5 billion for airlines in 2024.

How does Elliot Management's investment affect U.S. Global Investors?

Elliot Management's $2 billion investment in Southwest Airlines highlights the value in the airline sector, benefiting U.S. Global Investors' airline-focused ETF.