U.S. Global Investors (NASDAQ:GROW) told shareholders that it plans to continue monthly dividends, increased share buybacks, and make strategic investments in high-potential market sectors like gold and airlines.
On Friday, the firm’s Board of Directors approved a dividend of $0.0075 per share per month, effective from July 2024 through September 2024.
The group has consistently paid monthly dividends since June 2007, a statement noted.
At the closing price of $2.60 per share on June 12, 2024, the $0.0075 monthly dividend translates to an annualized yield of 3.46%.
U.S. Global reported that its yield surpasses recent benchmarks, with the company reporting a shareholder yield of 9.45% in May, outperforming yields on five-year and 10-year Treasury notes.
Moreover, U.S. Global Investors (NASDAQ:GROW) has significantly ramped up its share buyback program, repurchasing 59,891 shares in May 2024 at a net cost of approximately $160,000, a 45% increase from the same period last year.
“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,” CEO Frank Holmes told investors.
Holmes highlighted the value-driven approach behind the share buyback strategy, echoing sentiments shared by investment luminary Warren Buffett, who has long advocated for repurchasing shares at favorable valuations to benefit all shareholders.
In addition to its financial maneuvers, U.S. Global Investors is capitalizing on the surge in gold prices observed in 2024, leveraging its expertise in thematic investing with gold-themed mutual funds and ETFs, noting robust performance in its gold-related products.
As well, the company is optimistic about the profitability outlook for its airlines-focused ETF, buoyed by bullish forecasts from the International Air Transport Association (IATA). The IATA anticipates global airline profits to reach $30.5 billion in 2024, reflecting an upward trajectory driven by record-high traveler numbers and revenues.
Its bullish outlook is supported by recent market activities, including Elliot Investment Management's notable $2 billion stake in Southwest Airlines, a major holding in U.S. Global Investors' airlines ETF.
“I believe it’s important to follow the smart money,” said CEO 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.”