Royal Gold's Dividend Raise and Asset Sale Might Change the Case for Investing in RGLD

• Royal Gold announced it will raise its annual dividend by about 6% for 2026, from US$1.80 to US$1.90 per share, payable quarterly beginning January 16, 2026, and also disclosed the sale of its non-core Versamet Royalties Corporation shares through its International Royalty Corporation subsidiary.
• This move highlights Royal Gold's ongoing focus on strengthening shareholder returns while optimizing its portfolio through targeted asset sales and recent acquisitions.
• We'll examine how the dividend increase underscores Royal Gold's confidence in its future cash flows and portfolio strategy.

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Royal Gold Investment Narrative Recap

To be a Royal Gold shareholder today, you must believe in the enduring value and demand for gold as well as the company’s ability to diversify across gold, copper, and other metals through royalties and streaming deals. The recent dividend increase and sale of non-core assets may reinforce confidence in future cash flows, yet they do not materially alter the biggest near-term catalyst: the successful integration and earnings contribution from the Sandstorm Gold and Horizon Copper acquisitions. The primary risk remains gold price dependence amid volatile production at key assets; these portfolio updates do not significantly shift that equation in the short run.

Among Royal Gold’s latest moves, the announced sale of its Versamet Royalties stake is most relevant. This builds on efforts to concentrate resources on larger, more material royalty and streaming interests, reflecting the same focus behind the recent acquisitions. The company’s ability to maintain or grow dividends and reinvest in new deals continues to hinge on the reliability of royalty revenue from its largest assets, which now include expanded exposure through Sandstorm and Horizon.

But despite these positive signals, investors should also be mindful of ongoing production underperformance at key mines, as...

Read the full narrative on Royal Gold (it's free!)

Royal Gold's narrative projects $1.4 billion in revenue and $877.9 million in earnings by 2028. This requires 21.4% annual revenue growth and an earnings increase of $428.4 million from current earnings of $449.5 million.

Uncover how Royal Gold's forecasts yield a $248.18 fair value, a 34% upside to its current price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community range from US$143.73 to US$266.61 per share. While these perspectives vary widely, many recognize that gold price fluctuations and mine-level risks could continue to drive swings in Royal Gold’s earnings and returns, encouraging you to explore multiple viewpoints when assessing the stock’s outlook.

Explore 10 other fair value estimates on Royal Gold - why the stock might be worth as much as 44% more than the current price!

Build Your Own Royal Gold Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Royal Gold research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Royal Gold research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Royal Gold's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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