7th April 2015 I Bought 25 shares of TROW at $80.92 per share plus commission.
T. Rowe Price Group, Inc. is a publicly owned asset management holding company. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It invests in the public equity and fixed income markets across the globe. It also invests in alternative markets, including currency markets. The firm employs fundamental and quantitative analysis with a bottom-up approach. It utilizes in-house and external research to make its investments. The firm employs socially responsible investing with a focus on environmental, social, and governance issues. It was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland with additional offices in Colorado Springs, Colorado, Owings Mills, Maryland, San Francisco, California, Los Angeles, California, Tampa, Florida, Toronto, Ontario, Hellerup, Denmark, Amsterdam, The Netherlands, Luxembourg, Grand Duchy of Luxembourg, Zurich, Switzerland, Dubai, United Arab Emirates, London, United Kingdom, Sydney, New South Wales, Hong Kong, Tokyo, Japan, and Singapore. (Yahoo Finance)
After the long Easter weekend I took the next week free from work and I went to see how the spring progresses in Central Europe. Before departure, I put a few bids in with limit prices. TROW, of course, went through at the same day as it trades an extra ex-dividend date. My offer was valid until April 8, because for some reason (I think I read few blog post too much and I didn't check the company's website.) I assumed that before the April 9, purchased shares are entitled to receive the extra dividend. Anyway, I am happy with this purchase, even if I would have the opportunity to buy at lower prices on the same day.
TROW is a Dividend Champions with a 29 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 15.8, 12.4, 12.0 and 16.6. (Dividend Champions.xls) T. Rowe Price Group, Inc. now pays dividends of $0.52 per share in March, June, September and December.
TROW's earnings per share have developed nicely in the past 10 years, with the exception of a relatively large drop in 2008 and a small drop in 2009. Dividend growth has been impressive and I look forward to the growth to remain at about the same level in the future. The payout ratio has been less than 0.5 at all times, except for the years 2008 and 2009.
Some ratings for TROW:
Yahoo: Mean Recommendation 2.4, 1y Target Est $87.07
Reuters: Mean Rating 2.30
TROW has recently been quite popular also among the other bloggers.
- Dividend Growth Investor: T. Rowe Price Group (TROW) Dividend Stock Analysis
- Dividenddeveloper: The Battle of the Bankers: BEN vs TROW
- Passive Income Pursuit: Why T. Rowe Price Group, Inc. Is At The Top Of My Watch List
- Dividend Mantra: Recent Buy
- DivGro: Recent Buy: T. Rowe Price Group Inc
- Dividendvet: Acquisition
- Dividend Dreams: Stock Buy: TROW – T. Rowe Price Group
At today's exchange rate, this purchase 25 shares of TROW will increase €36.68 ($38.74) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9360.00. With purchase price $80.92 plus commission ($5.00) my starting yield on cost is 2.56%.
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Full Disclosure: Long TROW