Royal Gold Inc.
) 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
Lake Shore Gold Corp.
Golden Star Resources, Ltd.
Pretium Resources Inc.
). All of them carry a Zacks Rank #2 (Buy).
GOLDEN STAR RES (GSS): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
ROYAL GOLD INC (RGLD): Free Stock Analysis
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