U.S. Global Investors Provides July Updates on Its Stock Buyback and Dividend Programs
July 29 2022 - 6:43PM
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 share updates
on its stock buyback and dividend programs.
In the month of July, the Company bought back 5,897 shares at a
net cost of approximately $25,000. This represents a slight
increase from the amount of GROW shares that were purchased in July
2021, suggesting there was less stock volatility this year compared
to last year. The Company uses an independent broker that
strategically repurchases stock on down days using an
algorithm.
The monthly dividend of $0.0075 is authorized through September
2022 and will be considered for continuation at that time by the
Board. The July dividend record date was July 11, and the payment
date was July 25.
The Company has paid a monthly dividend for more than 12 years
straight and increased its dividend twice in 2021. At the July 28,
2022, closing price of $4.23, the $0.0075 monthly dividend equals a
2.13% yield on an annualized basis.
Upcoming ETF Webcast
On August 10, the Company will host a webcast with ETF Trends on
two of our unique thematic product offerings in the global travel
and shipping industries. To receive further details and register
for the event, please email info@usfunds.com with the subject line
“ETF webcast.”
U.S. Global Investors Responds to Misleading
Allegations
The Company acknowledges that it has reviewed a July 19 press
release that alleges that the Company did not disclose to
shareholders its employment of a Company family member on three
occasions between August 2012 and December 2021.
This is a misleading accusation. The Company is aware of and in
compliance with SEC §229.404 (Item 404), which requires a company
to disclose a transaction in which the company was or is a
participant, “and the amount involved exceeds $120,000, and in
which any related person had or will have a direct or indirect
material interest.”
“Once again, the Company is not interested in any proposal that
does not provide the Company shareholders the appropriate value for
their securities. We don’t believe accepting a lowball bid would be
in the best interest of shareholders. What is in their best
interest is for us to maintain our strategy of raising our cash
levels, paying monthly dividends and repurchasing shares on down
days,” says Chief Executive Officer Frank Holmes.
GROW Stock Continues to Outperform, Building Our Cash Levels
for Resilience in a Rising Interest Rate World
In the last press release, the Company shared two charts showing
that shares of GROW outperformed an index of asset managers for the
year-to-date period as of June 24 and five-year period. The Company
is pleased to share the news that GROW stock has also outperformed
the Dow Jones U.S. Small Cap Asset Managers Index for the
year-to-date, three-year, five-year and 10-year periods through
July 29, 2022.
“On a final note, a recent McKinsey & Company report states
that companies can build resilience to weather an economic downturn
by maintaining a strong balance sheet and keeping ample cash on
hand,” Mr. Holmes says. “We agree, and we will continue to build
our cash for two key reasons. One, fears of a recession are looming
over the capital markets, and two, this will put us in a better
position to acquire other investment advisors.”
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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.
# # #
The continuation of future cash dividends will be determined by
the Board, 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 Dow Jones U.S. Small Cap Asset Managers Index is a market
cap-weighted index of publicly traded small-cap asset management
firms in the U.S.
- GROW vs. the Dow Jones U.S. Small Cap Asset Managers Index
- GROW vs. the Dow Jones U.S. Small Cap Asset Managers Index
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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