T. Rowe Price Group, Inc. (NASDAQ:TROW) Shareholders to Get $1.30 Quarterly Dividend

Key Points

• T. Rowe Price declared a quarterly dividend of $1.30 per share, payable December 29 to shareholders of record December 16. That equals $5.20 annually and a 4.6% yield.
• The company has increased its dividend for 39 consecutive years. Its 61.8% payout ratio indicates the dividend is covered by earnings; analysts expect the ratio to fall to 51.5% next year.
• Quarterly results beat estimates: earnings were $2.86 per share versus $2.63 expected, while revenue rose 5.9% year over year to $2 billion. Analysts’ average rating was “Reduce,” with an average price target of $102.83.

T. Rowe Price Group, Inc. (NASDAQ:TROW - Get Free Report) announced a quarterly dividend on Wednesday, November 4th. Investors of record on Wednesday, December 16th will be given a dividend of $1.30 per share by the asset manager on Tuesday, December 29th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Wednesday, December 16th.

T. Rowe Price Group has raised its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 39 years. T. Rowe Price Group has a dividend payout ratio of 61.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect T. Rowe Price Group to earn $10.10 per share next year, which means the company should continue to be able to cover its $5.20 annual dividend with an expected future payout ratio of 51.5%.

T. Rowe Price Group Stock Performance

TROW stock opened at $112.57 on Thursday. The stock has a market capitalization of $24.01 billion, a P/E ratio of 11.38, a PEG ratio of 4.07 and a beta of 1.43. The company has a 50 day moving average price of $105.41 and a two-hundred day moving average price of $103.74. T. Rowe Price Group has a one year low of $85.22 and a one year high of $122.00.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The asset manager reported $2.86 earnings per share for the quarter, topping the consensus estimate of $2.63 by $0.23. T. Rowe Price Group had a net margin of 28.40% and a return on equity of 20.63%. The business had revenue of $2 billion for the quarter, compared to analyst estimates of $1.98 billion. During the same period in the prior year, the firm posted $2.81 EPS. The company's revenue was up 5.9% on a year-over-year basis. Research analysts forecast that T. Rowe Price Group will post 10.29 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

TROW has been the topic of several research analyst reports. Zacks Research cut shares of T. Rowe Price Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 13th. Keefe, Bruyette & Woods restated a "market perform" rating and set a $113.00 price target (up from $112.00) on shares of T. Rowe Price Group in a report on Friday, October 30th. Evercore set a $109.00 price target on T. Rowe Price Group in a research report on Friday, October 9th. Weiss Ratings raised T. Rowe Price Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, September 4th. Finally, BMO Capital Markets reduced their target price on T. Rowe Price Group from $120.00 to $110.00 and set a "market perform" rating for the company in a research report on Tuesday, October 13th. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, T. Rowe Price Group presently has an average rating of "Reduce" and an average target price of $102.83.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland. Founded in 1937 by Thomas Rowe Price Jr., the company provides investment strategies and advisory services to individual investors, retirement plans, financial intermediaries, institutions and other clients.

The company offers a range of actively managed and multi-asset investment products, including mutual funds, exchange-traded funds, separately managed accounts and other portfolio solutions.

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