U.S. Global Investors Announces a Substantial Increase in February’s Stock Buybacks Compared to Last Year, Continuation of Monthly Dividends for Past 13 Years
07 Março 2024 - 6:19PM
U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a
registered investment advisory firm with longstanding experience in
global markets and specialized sectors, today is pleased to
announce that it repurchased 102,636 of its own shares in February
2024, at a net cost of approximately $281,000. This represents a
substantial increase of nearly 200% from the number of shares
purchased the same month a year earlier.
As a reminder, the Board of Directors (the “Board”) modified the
Company’s buyback program in February 2022, increasing the annual
limit from $2.75 million to $5 million. Since March 2022, the
Company has bought back around 1 million of its shares.
“U.S. Global Investors is committed to enhancing shareholder
value, and buying back our own stock is just one way that
demonstrates our strategic approach to capital allocation. It also
showcases our confidence in the Company’s future prospects,” says
Frank Holmes, the Company’s CEO and Chief Investment Officer. “We
believe GROW is deeply undervalued right now, and we will continue
buying as small-cap stocks remain under pressure from higher
borrowing costs.”
Continuation of Monthly GROW Dividends
The Company’s Board of Directors (the “Board”) approved payment
of the $0.0075 per share per month dividend beginning in April 2024
and continuing through June 2024. The record dates are April 8, May
6 and June 10, and the payment dates will be April 22, May 20 and
June 24.
At the February 29, closing price of $2.61, the $0.0075 monthly
dividend equals a 3.45% yield on an annualized basis. For the 12
months ended December 29, 2023, the Company’s total shareholder
yield was approximately 7.9%, which was more than twice the yield
on the 10-year Treasury that same day.[1]
“We maintain a high conviction in sharing own shareholder yield
because we believe focusing on dividends or buybacks alone fails to
give investors the full picture,” says Mr. Holmes. “I urge readers
interested in learning more to check out Mebane Faber, co-founder
of Cambria Investment Management and author of Shareholder Yield: A
Better Approach to Dividend Investing. A strong advocate for
shareholder yield, Faber has shown numerous times that the strategy
works in multiple industries.”
Gold at New All-Time High
The Company is also pleased to report that the price of gold has
recorded a new record high in intraday trading as of March 5, 2024,
on investor hopes that the Federal Reserve may begin easing
monetary policy later this year.
“This is very constructive news for the gold mining industry,
which will see higher revenues as a result of these prices,” says
Mr. Holmes.
Gaining Exposure with Smart Beta 2.0 Thematic Funds
U.S. Global Investors is a pioneer in the gold industry,
launching the very first no-load gold mutual fund in 1974.
The Company currently offers two gold-related mutual funds and one
exchange-traded fund focused on precious metal mining.
“The run-up in gold is specifically beneficial to our gold
royalty and streaming ETF, since it focuses on companies that
generate over 50% of their revenue from precious metals. Our
smart-beta 2.0 approach allows us to combine the advantages of
passive investing and those of active investing,” says Mr. Holmes.
“Instead of ranking companies by market capitalization, we take a
more quantitative approach, screening for key financial
factors.”
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 services
to U.S. Global Investors Funds and U.S. Global ETFs.
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# # #
All opinions expressed and data provided are subject to change
without notice. Some of these opinions may not be appropriate to
every investor. There is no guarantee that the funds will declare
dividends in the future or that, if declared, will remain at
current levels or increase over time. 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. Smart beta 2.0 combines the benefits of passive
investing and the advantages of active investing strategies. Quant
investing, or quantitative analysis, is the use of statistical
models in investment management.
[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.
- Gold Trading at a New All-Time High
- GROW Has Bought Back 1 Million of Its Own Shares Since Program
Was Enchanced
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
US Global Investors (NASDAQ:GROW)
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