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    Dividend Hike And Streaming Deals Could Be A Game Changer For Royal Gold (RGLD)

    Simply Wall St·12/08/2025 13:18:16
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    • Earlier this month, Royal Gold reported record third-quarter 2025 revenue, announced a 6% increase in its annual dividend to US$1.90 per share, and disclosed that Senior Vice President of Corporate Development Daniel Breeze sold 970 shares on 4 December 2025.
    • These updates come alongside the completed Sandstorm Gold and Horizon Copper acquisitions and an extended Mount Milligan mine life to 2045, reshaping Royal Gold’s long-term portfolio mix and cash flow profile.
    • Against this backdrop, we’ll explore how the higher dividend and expanded streaming portfolio influence Royal Gold’s existing investment narrative.

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    Royal Gold Investment Narrative Recap

    To own Royal Gold, you need to believe in the durability of gold demand and the appeal of a low-operating-risk royalty model that converts metal prices into high-margin cash flow. The record Q3 2025 revenue, higher dividend and insider sale do not materially change the near term focus on successfully integrating the Sandstorm Gold and Horizon Copper portfolios while managing the higher leverage that comes with them.

    The roughly 6% dividend increase to US$1.90 per share a year is the clearest link between the recent results and Royal Gold’s investment case, because it directly reflects how management views the sustainability of current cash flows. For investors watching the Sandstorm and Horizon acquisitions as the key catalyst, this higher payout raises the stakes: if integration or asset performance disappoints, there is less room for error before debt, growth spending and dividends start to compete for the same cash.

    Yet behind the dividend increase, investors still need to be aware of how concentrated Royal Gold remains in gold prices and what happens if...

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

    Royal Gold's narrative projects $1.4 billion revenue and $877.9 million earnings by 2028. This requires 21.4% yearly revenue growth and an earnings increase of about $428 million from $449.5 million today.

    Uncover how Royal Gold's forecasts yield a $248.55 fair value, a 23% upside to its current price.

    Exploring Other Perspectives

    RGLD Community Fair Values as at Dec 2025
    RGLD Community Fair Values as at Dec 2025

    Ten members of the Simply Wall St Community now value Royal Gold between US$143.73 and US$266.61 per share, highlighting a wide spread in expectations. You can weigh those views against the increased balance sheet risk tied to the Sandstorm and Horizon deals and decide what that might mean for the company’s ability to support growth and a rising dividend over time.

    Explore 10 other fair value estimates on Royal Gold - why the stock might be worth as much as 32% 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.

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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.