U.S. Global Investors Repurchased Substantially More of Its Stock Year-over-Year in September, Authorizes Monthly Dividend Through December

Rhea-AI Summary

U.S. Global Investors, Inc. (GROW) announced significant developments in its stock repurchase and dividend programs. In September 2022, the company repurchased 31,687 shares for approximately $99,000, marking a 670% increase year-over-year. The quarterly buyback totaled just under 40,000 shares, a 193% rise from 2021. A monthly dividend of $0.0075 per share was authorized, yielding 3.14% annually based on the September 30 closing price of $2.87. These strategic moves reflect the company's belief in the undervaluation of its stock amid a challenging market environment.

Positive

• 31,687 shares repurchased in September 2022, a 670% increase compared to last year.
• Quarterly buybacks nearing 40,000 shares, representing a 193% increase from 2021.
• Monthly dividend of $0.0075 per share authorized, reflecting a 3.14% annual yield.

Negative

• None.

San Antonio, TX, Oct. 05, 2022 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, is pleased to provide an update on its monthly stock repurchase and dividend programs.

Stock Repurchases

In September 2022, the Company bought back 31,687 shares at an approximate net cost of $99,000. Compared to the same month last year, this represents an approximately 670% increase in the number of shares and 295% increase in the net cost. For the quarter ended September 30, the Company repurchased just under 40,000 shares of GROW stock, a 193% increase from the same quarter in 2021, at an approximate net cost of $133,400, or 63% more than last year.

The Company strategically repurchases GROW stock on down days using an algorithm, and this September was the worst month for stocks in general since March 2020. We believe that the Company’s stock is undervalued, making the buybacks an attractive opportunity in anticipation of a potential rebound.

Scheduled Dividends

A monthly dividend of $0.0075 per share was authorized in September 2022 to continue through December 2022. The dividend record dates are October 10, November 14 and December 12, and the payment dates are October 24, November 28 and December 27.

At the September 30, 2022, closing price of $2.87, the $0.0075 monthly dividend equals a 3.14% yield on an annualized basis.

The continuation of future cash dividends will be determined by the 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.

ABC Investment Plan

The Company’s mutual fund ABC Investment Plan allows investors to start participating in the market affordably and at their own pace. It requires only an initial investment of $1,000, followed by $100 per month, per fund.

That comes out to being less than a latte at Starbucks every day. The Company believes the ABC Investment Plan could be suitable for young people at the start of the accumulation phase and other investors seeking a more affordable option that takes out a lot of the guesswork in market timing.

New account applicants can enroll in the ABC Investment Plan by clicking here.

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Follow U.S. Global Investors on Twitter by clicking here.

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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 money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.

A program of regular investing doesn’t assure a profit or protect against loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as in periods of rising prices.

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 accounts managed by U.S. Global Investors as of 6/30/2022: Starbucks Corp.

FAQ

What were the stock buyback details for U.S. Global Investors (GROW) in September 2022?

In September 2022, U.S. Global Investors bought back 31,687 shares at a net cost of approximately $99,000, a 670% increase from the previous year.

What is the dividend amount for U.S. Global Investors (GROW) for the upcoming months?

U.S. Global Investors authorized a monthly dividend of $0.0075 per share, scheduled for payment through December 2022.

How does the stock buyback program impact U.S. Global Investors (GROW) stock price?

The company believes the stock is undervalued, and buybacks are seen as an attractive opportunity to support potential stock price recovery.

What is the expected annual yield from the U.S. Global Investors (GROW) dividend?

Based on the September 30 closing price of $2.87, the $0.0075 monthly dividend corresponds to an annual yield of 3.14%.