Monday, March 9, 2015

Why T. Rowe Price Group, Inc. Is At The Top Of My Watch List

One sector that I've been looking to increase my stake in is financials. I currently own some of the "too big to fail" banks that have treated me quite nicely, but a little further diversification in the sector would be welcomed. Asset management seems ripe for the picking for profitable companies and T. Rowe Price Group, Inc. (NASDAQ:TROW) hasn't disappointed. TROW currently has a 29-year dividend growth streak, marking it as a dividend champion. The following tables/graphs are from my personal stock analysis spreadsheet. Data for the stock analysis was acquired through T. Rowe Price Group's investor relations page, Morningstar.com, and Yahoo!Finance.

Historic Growth Rates: 

 Historically, T. Rowe Price has provided excellent returns. According to longrundata.com shares of TROW have given investors a 324% total return over the last 10 years, good for 12.47% annually. Looking at the historical growth rates for per share dividends, earnings, revenue and free cash flow paints an equally bright picture.

Check out the remained of the T. Rowe Price Stock Analysis on Seeking Alpha.

8 comments:

  1. JC,
    TROW was added in my watch list lately and I believe its fairly valued at this time, looking forward for a price dip especially before the ex dividend for the $2 special dividend. We'll see how it turns out. Thanks for sharing your review.
    FFF

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    1. F2FF,

      I really like the asset managers because of their quasi-toll road status. They make you money they get their cut. They lose you money they still get their cut. Would love to see it dip down to $76-78 before the special dividend and I'd probably add more.

      Thanks for stopping by!

      Delete
  2. JC - TROW is definitely on our watch list. Current investors enjoy a phenomenal 29-yr dividend growth streak. Also, TROW not only announced a special dividend of $2 a share but also just raised their quarterly dividend by 18%! Sounds like a true gem there...I'm just wondering if I have missed the boat though since its been on such a great streak. AFFJ

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    1. AFFJ,

      I think TROW is a pretty solid investment at current prices. Long DG streak plus occasional special dividends is always a plus. If you believe the long term trend of the US and global economies and stock markets are higher then I think the asset managers are still a good place to be. Granted it's had a great run since FY 2009 but what company hasn't? During the next bear market or recession will be a great time to load up on some asset managers but the problem is I have no idea when that will happen. So I decided to add some at a solid price. I can always add more right?

      Thanks for stopping by!

      Delete
  3. Asset managers can be a good place to invest, particularly if assets under management are in growth mode. I don't know if TROW manage any retirement assets or 401k plans, but I'm sure that has to be a growth area, particularly with the tax concessions and employer matches that exist to drive these assets.

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    1. Integrator,

      Asset managers seem great for investments. I'd love to find one that has a lot more exposure to retirement accounts because those have a great source of steady asset growth.

      Thanks for stopping by!

      Delete
  4. Perfect timing, JC! I was debating between a few of the asset management companies, including TROW, BEN, and BLK. Thanks to your research I just bought TROW. BEN remains on the watchlist.

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    1. Scott,

      I want to look at BLK as well because I know they're big into the ETFs which is where it looks like things are heading. Nice to be a fellow shareholder of TROW. Enjoy that special dividend coming up next month!

      Thanks for stopping by!

      Delete