DENVER - Royal Gold, Inc. (NASDAQ:RGLD) announced an increase in its annual common stock dividend by 12.5%, from $1.60 to $1.80 per share, marking a continued trend of annual dividend growth. The enhanced dividend will be distributed quarterly at $0.45 per share, with the first payment scheduled for January 17, 2025, to shareholders of record as of January 3, 2025.
Bill Heissenbuttel, President and CEO of Royal Gold, highlighted the company's track record of increasing shareholder returns, noting that since the initiation of dividends in 2000, and consistent annual increases from 2001, the company has distributed approximately $1 billion in dividends. Heissenbuttel also pointed out that Royal Gold is the only precious metals company included in the S&P High Yield Dividend Aristocrats Index, emphasizing its commitment to paying a growing and sustainable dividend.
Royal Gold is a precious metals stream and royalty company that acquires and manages precious metal streams, royalties, and production-based interests. As of September 30, 2024, the company holds interests in 175 properties across five continents, including 40 producing mines and 19 development-stage projects. Royal Gold trades on the Nasdaq Global Select Market under the ticker RGLD.
The announcement of the dividend increase is based on a press release statement from Royal Gold. This strategic move aligns with the company's objective to deliver consistent and increasing value to its shareholders and underscores its position within the precious metals sector.
In other recent news, Royal Gold, Inc. reported record revenues for the third quarter of 2024. The precious metals royalty company saw a significant year-over-year increase in earnings, highlighting its robust financial position with over $1.1 billion in liquidity and no remaining debt. Q3 2024 revenues reached a record $194 million, marking a 40% increase from the previous year. Operating cash flow and earnings per share also experienced considerable increases, rising by 39% and 95%, respectively.
Despite recovery issues potentially hindering silver sales, gold sales for 2024 are projected to align with or fall slightly below guidance, while copper and other metals could surpass expectations. The company is also responding to SEC Regulation SK 1300 by amending its 2023 Form 10-K, which impacts reserve reporting. Amid political changes in Botswana and uncertainties in production guidance for 2025, Royal Gold remains optimistic about future deals, particularly in the Americas and Australia.
Contributions from new producing assets, including Cote Gold and Mancha, have bolstered revenues, while the acquisition of Back River royalties aligns with the company's focus on quality projects in favorable jurisdictions. While the company navigates the geopolitical landscape and prepares to release more concrete 2025 guidance, these recent developments underline Royal Gold's commitment to business development and maintaining disciplined due diligence standards.
InvestingPro Insights
Royal Gold's recent dividend increase aligns with its impressive track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 25 consecutive years and has raised its dividend for 9 consecutive years. This consistency is reflected in the company's current dividend yield of 1.09%.
The company's financial health appears robust, with InvestingPro Tips highlighting Royal Gold's impressive gross profit margins. This is corroborated by the data showing a gross profit margin of 85.83% for the last twelve months as of Q3 2024. Such strong margins provide the company with financial flexibility to sustain and grow its dividend payments.
Royal Gold's market performance has been noteworthy, with a one-year price total return of 32.64% as of the latest data. The stock is currently trading near its 52-week high, with the price at 94.75% of its highest point over the past year. This performance, coupled with the dividend increase, suggests investor confidence in the company's business model and growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for Royal Gold. These tips could provide valuable context for understanding the company's financial position and future outlook in the precious metals stream and royalty sector.
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