Financial Stocks Add Slightly to Mid-Day Dip

Financial stocks edged lower Wednesday, with the NYSE Financial Sector Index dropping slightly less than 0.2% while financial companies in the S&P 500 Index also were slipping more than 0.4% in late trade.

In company news, U.S. Global Investors (GROW) fell Wednesday, sinking over 10% to a session low of $2.01 a share despite the boutique investment advisory firm today saying it will continue paying monthly dividends during its fiscal Q2.

The company has approved payment of a $0.0025 per share monthly dividend for October and continuing through December, unchanged from its Q1 monthly dividends. The dividend will be paid Oct. 30, Nov. 27 and Dec. 26 to shareholders of record on Oct 16, Nov 13 and Dec. 12, respectively.

The current payments extends a string of continuous monthly dividends now dating back more than 10 years, U.S. Global said. Future cash dividends will be determined by the company’s board of directors after reviewing its financial performance and other factors.

In other sector news,

(+) PAYX, RBC Capital Markets raises price target by $3 to $57 a share while reiterating its Underperform stock rating.

(-) PRAA, Janney drops stock rating to Sell from Neutral and trims price target by $5 to $22 a share, blaming falling purchase price multiples, rising interest costs following a recent refinancing and higher operating expenses as likely “headwinds” to future profit growth.

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