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

Key Points

• T. Rowe Price declared a quarterly dividend of $1.30 per share, payable September 29 to shareholders of record on September 15. The payment represents a 4.6% annualized yield, and the company has raised its dividend for 39 consecutive years.
• The dividend appears adequately covered, with a current payout ratio of 61.8% and an expected future payout ratio of 51.8% based on projected earnings.
• T. Rowe Price reported quarterly earnings of $2.57 per share and revenue of $1.91 billion, beating analyst estimates and increasing revenue 10.7% year over year. Despite this performance, analysts’ consensus rating remained “Reduce,” with an average price target of $105.92.

T. Rowe Price Group, Inc. (NASDAQ:TROW - Get Free Report) declared a quarterly dividend on Thursday, August 6th. Stockholders of record on Tuesday, September 15th will be given a dividend of 1.30 per share by the asset manager on Tuesday, September 29th. This represents a c) annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Tuesday, September 15th.

T. Rowe Price Group has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 39 years. T. Rowe Price Group has a payout ratio of 61.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect T. Rowe Price Group to earn $10.03 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 51.8%.

T. Rowe Price Group Stock Performance

Shares of T. Rowe Price Group stock traded up $0.65 during midday trading on Friday, reaching $114.27. 510,208 shares of the company's stock traded hands, compared to its average volume of 2,227,723. The stock has a 50 day moving average of $112.62 and a 200-day moving average of $102.35. T. Rowe Price Group has a 12 month low of $85.22 and a 12 month high of $122.00. The company has a market cap of $24.38 billion, a PE ratio of 11.47, a price-to-earnings-growth ratio of 4.47 and a beta of 1.47.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) last released its quarterly earnings results on Friday, July 31st. The asset manager reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.52 by $0.05. T. Rowe Price Group had a net margin of 29.26% and a return on equity of 20.91%. The business had revenue of $1.91 billion for the quarter, compared to analysts' expectations of $1.89 billion. During the same quarter in the previous year, the business posted $2.24 earnings per share. The firm's revenue for the quarter was up 10.7% compared to the same quarter last year. On average, equities analysts anticipate that T. Rowe Price Group will post 10.14 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts recently issued reports on TROW shares. BMO Capital Markets boosted their price target on shares of T. Rowe Price Group from $110.00 to $120.00 and gave the company a "market perform" rating in a research report on Monday. JPMorgan Chase & Co. cut their price objective on T. Rowe Price Group from $106.00 to $103.00 and set an "underweight" rating on the stock in a research report on Friday, April 24th. Morgan Stanley set a $116.00 target price on T. Rowe Price Group in a research report on Wednesday, July 29th. TD Cowen lifted their price target on T. Rowe Price Group from $107.00 to $108.00 and gave the company a "hold" rating in a research report on Monday. Finally, Evercore set a $121.00 price target on shares of T. Rowe Price Group in a research note on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $105.92.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.

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