Tuesday, April 14, 2015

Recent Buy - T. Rowe Price Group, Inc. (TROW)



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.

Source: gurufocus.com

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
    Morningstar:  (***)

TROW has recently been quite popular also among the other bloggers.



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%.

Click here to see my portfolio.

Full Disclosure: Long TROW

10 comments:

  1. Roadmap2RetireApril 14, 2015 at 5:36 PM

    A strong company - taht is seeing a lot of love from the other investors as well. Congrats on adding this to your arsenal.

    Best wishes
    R2R

    ReplyDelete
    Replies
    1. DividendHawkApril 15, 2015 at 5:30 PM

      Hi R2R

      Thanks. Yes TROW has been very popular recently, maybe because of that special dividend.

      Thanks for stopping by!
      DH

      Delete
  2. FrugalitytoFinancialFreedomApril 14, 2015 at 8:54 PM

    Great buy on T.Rowe, a company that I expect to provide many years of dividend income and increases!

    ReplyDelete
    Replies
    1. DividendHawkApril 15, 2015 at 5:31 PM

      Hi FFF

      Thank you. I expect the same and hopefully we are right.

      Thanks for stopping by!
      DH

      Delete
  3. AnonymousApril 14, 2015 at 9:39 PM

    Great buy! I wonder which broker you are using since you say commission is only $5.00. My current broker (Nordnet Finland) has a minimum commission on $15.00 :(

    / John

    ReplyDelete
    Replies
    1. DividendHawkApril 15, 2015 at 5:32 PM

      Hello John

      Thanks. For the North American market I use nowadays LYNX broker (www.lynxbroker.de) Last summer I opened an account there. Have also Nordnet, but using it only for the Nordic market.

      Thanks for stopping by!
      DH

      Delete
    2. AnonymousApril 15, 2015 at 11:03 PM

      Thanks DH! Never heard of them before, too bad they don't provide the service in English or Swedish. How about tax reports, guess you have to do manual reports?

      / John

      Delete
    3. DividendHawkApril 16, 2015 at 6:54 PM

      Hi again John

      They have service in English and that Trader Workstation is in English, all reports you can have in English as well. You are right, all reports to the Finnish tax authority you need do yourself. German I needed only to fill the application to open my account. LYNX has some kind of connection to the Interactive Brokers (www.interactivebrokers.com), maybe you should look that also. IB has commission $1 / trade, but it has some other cost and higher deposit to open account.

      DH

      Delete
  4. DivGuyApril 14, 2015 at 9:55 PM

    It is a strong company with interesting growth rate which I tend to value a lot but I honestly think the yield is still a little too low.

    Cheers!

    Mike

    ReplyDelete
    Replies
    1. DividendHawkApril 15, 2015 at 5:33 PM

      Hi Mike

      I agree with you that the yield is low, especially for my portfolio, but maybe then the risk will be lower also.

      Thanks for stopping by!
      DH

      Delete