US Global Investors Inc's Dividend Analysis
Assessing the Sustainability of US Global Investors Inc's Dividend
US Global Investors Inc (NASDAQ:GROW) recently announced a dividend of $0.01 per share, payable on 2024-01-22, with the ex-dividend date set for 2024-01-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into US Global Investors Inc's dividend performance and assess its sustainability.
What Does US Global Investors Inc Do?
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US Global Investors Inc is a registered investment advisory firm. The company furnishes an investment program for each of the clients it manages and determines, subject to overall supervision by the applicable board of trustees of the clients, the clients' investments pursuant to an advisory agreement. US Global manages the following business segments: Investment management services; and Corporate Investments. It derives all its revenue from Investment management services.
A Glimpse at US Global Investors Inc's Dividend History
US Global Investors Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a monthly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down US Global Investors Inc's Dividend Yield and Growth
As of today, US Global Investors Inc currently has a 12-month trailing dividend yield of 3.12% and a 12-month forward dividend yield of 3.12%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, US Global Investors Inc's annual dividend growth rate was 44.20%. Extended to a five-year horizon, this rate decreased to 29.40% per year. And over the past decade, US Global Investors Inc's annual dividends per share growth rate stands at -1.60%.
Based on US Global Investors Inc's dividend yield and five-year growth rate, the 5-year yield on cost of US Global Investors Inc stock as of today is approximately 11.32%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, US Global Investors Inc's dividend payout ratio is 0.44.