Only Four Days Left To Cash In On U.S. Global Investors' (NASDAQ:GROW) Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see U.S. Global Investors, Inc. (NASDAQ:GROW) is about to trade ex-dividend in the next four days. This means that investors who purchase shares on or after the 13th of November will not receive the dividend, which will be paid on the 30th of November.
U.S. Global Investors's next dividend payment will be US$0.0025 per share, and in the last 12 months, the company paid a total of US$0.03 per share. Last year's total dividend payments show that U.S. Global Investors has a trailing yield of 1.0% on the current share price of $2.97. If you buy this business for its dividend, you should have an idea of whether U.S. Global Investors's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.
See our latest analysis for U.S. Global Investors
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. U.S. Global Investors paid out a comfortable 50% of its profit last year.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Click here to see how much of its profit U.S. Global Investors paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. That explains why we're not overly excited about U.S. Global Investors's flat earnings over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. U.S. Global Investors has seen its dividend decline 19% per annum on average over the past 10 years, which is not great to see.
To Sum It Up
Is U.S. Global Investors worth buying for its dividend? U.S. Global Investors's earnings per share have not grown at all in recent years, although we like that it is paying out a low percentage of its earnings. We think there are likely better opportunities out there.
If you're not too concerned about U.S. Global Investors's ability to pay dividends, you should still be mindful of some of the other risks that this business faces. Case in point: We've spotted 3 warning signs for U.S. Global Investors you should be aware of.
We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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