Royal Gold Raises Annual Dividend by 5% - Analyst Blog

By Zacks Equity Research,

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Royal Gold Inc. ( RGLD ) announced that its Board has hiked the annual dividend for its shares of common stock by 5% to 84 cents from 80 cents, payable on a quarterly basis of 21 cents a share. Royal Gold has a track record of increasing its dividend steadily since 2001.

The dividend of 21 cents per share will be payable on Jan 17, 2014, to shareholders of record at the closing bell on Jan 3, 2014. The quarterly dividend of 21 cents is also payable to holders of exchangeable shares of RG Exchangeco. The dividend increase reflects Royal Gold's healthy cash flows which allows it to return capital to shareholders.

About a year ago, Royal Gold raised its annual dividend for its shares of common stock from 60 cents to 80 cents (20 cents a share on a quarterly basis). This represented a gain of 33% from the dividend paid in calendar year 2012.

Few days back, Royal Gold released its first-quarter fiscal 2014 (ending Sep 30, 2013) results. The company posted earnings of 23 cents per share in the quarter, compared with 41 cents in the year-ago quarter. Net income was $15.2 million in the quarter compared with $24.8 million a year ago.

The company's royalty revenues were $56.5 million in the reported quarter compared with $77.9 million in the prior-year period. The results were impacted by a lower average gold price of $1,326 per ounce (a 20% decrease from the prior-year quarter) and declined production at Voisey's Bay, Penasquito, Las Cruces, Robinson (copper), Leeville and Cortez.

Royal Gold currently holds a Zacks Rank #3 (Hold).

Other companies in the gold mining industry with favorable Zacks Rank are Lake Shore Gold Corp. ( LSG ), Golden Star Resources, Ltd. ( GSS ) and Pretium Resources Inc. ( PVG ). All of them carry a Zacks Rank #2 (Buy).

GOLDEN STAR RES (GSS): Free Stock Analysis Report

LAKE SHORE GOLD (LSG): Free Stock Analysis Report

PRETIUM RES INC (PVG): Free Stock Analysis Report

ROYAL GOLD INC (RGLD): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: GSS , LSG , PVG , RGLD

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