Dividend Aristocrat Overview: T. Rowe Price Group, Inc.

Photo: Freeimages.com/Ibon San Martin

About T. Rowe Price Group

Global investment manager T. Rowe Price Group offers a full range of investment strategies for its customers including equity, fixed income and asset allocation portfolios, as well as a family of no-load mutual funds. Thomas R. Price, Jr. formed the company in 1937, which now employs nearly 5100 people and has over $700 billion assets under management.

The company is a member of the S&P 500 index and trades under the ticker symbol TROW.

T. Rowe Price Group’s Dividend and Stock Split History

T. Rowe Price Dividends

T. Rowe Price has compounded dividends by more than 11% over the last 5 years.

T. Rowe Price Group has increased dividends annually since 1987. T. Rowe Price met the Dividend Aristocrat criteria of 25 consecutive years of increasing regular dividend payments in 2011. Since 2009, T. Rowe Price Group has increased its dividend payout in the 1st quarter of the calendar year. Most recently, at the beginning of 2016, T. Rowe Price increased the stock’s quarterly dividend by 3.9% to 54 cents per share from 52 cents per share. T. Rowe Price’s next dividend increase is expected in March 2017.

T. Rowe Price has an excellent long-term record of dividend growth. In most years, the company has increased the payout by double digits. The company has compounded dividends over the last 5 and 10 years by 11.74% and 13.86%, respectively. The dividend growth rate over the very long term is even higher, with 20-year and 25-year CADGRs of 15.98% and 17.15%.

T. Rowe Price Group has split its stock five times since beginning its record of annual dividend growth in 1987. Two for one stock splits occurred in November 1989, August 1993, February 1996, February 1998, and May 2006. For each share purchased in 1987, you would now have 32 shares of T. Rowe Price stock.

Over the 5 years ending on December 31, 2015, T. Rowe Price stock appreciated at an annualized rate of 5.12%, from $54.87 to $70.43. This underperformed the 10.20% annualized return of the S&P 500 during this time.

T. Rowe Price’s Direct Purchase and Dividend Reinvestment Plans

T. Rowe Price does not offer either a direct purchase or a dividend reinvestment plan.  Most brokers offer the option for investors to reinvest dividends automatically.  Fees will vary by broker; investors should contact them directly for more information.

Helpful Links

T. Rowe Price Group’s Investor Relations Website

Current quote and financial summary for T. Rowe Price Group (finviz.com)

 

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