T. Rowe Price raises dividend for 39th consecutive year

BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW), a global asset management firm, has declared a quarterly dividend of $1.27 per share, an increase from the previous $1.24 per share, representing an attractive 4.52% dividend yield. The dividend is payable on March 28, 2025, to shareholders of record at the close of business on March 14, 2025.

The newly announced dividend rate marks a 2.42% increase and continues the company’s track record of annual dividend growth since its initial public offering. This year’s increase will be the 39th consecutive year of higher dividends for the company’s stockholders. According to InvestingPro, T. Rowe Price maintains strong dividend sustainability with a healthy payout ratio and robust financial health score.

T. Rowe Price, founded in 1937, is known for its investment excellence, retirement leadership, and independent proprietary research. Trading at a P/E ratio of 12.01 and showing strong revenue growth of 9.8%, InvestingPro analysis suggests the stock is currently undervalued. The firm prioritizes a culture of integrity and places client interests at the forefront. It provides active management across various investment capabilities including equity, fixed income, alternatives, and multi-asset classes.

As of December 31, 2024, T. Rowe Price oversees $1.61 trillion in assets under management, with approximately two-thirds of these assets being retirement-related. With a market capitalization of $24.34 billion, the company serves millions of clients worldwide, including individuals and institutions.

The information for this report is based on a press release statement from T. Rowe Price Group.

In other recent news, T. Rowe Price has been the subject of various financial developments. The company’s fourth-quarter earnings fell short of analyst expectations, with adjusted earnings per share at $2.12, below the consensus estimate of $2.21. Revenue also came in lower than expected, at $1.82 billion, compared to the anticipated $1.88 billion. Despite these misses, T. Rowe Price managed to return $355 million to stockholders in Q4 through dividends and share repurchases, totaling $1.5 billion returned to shareholders for the full year 2024.

In terms of asset management, the firm reported net client outflows of $19.3 billion for the quarter, with assets under management standing at $1.61 trillion as of December 31, 2024. However, T. Rowe Price has shown progress in reducing its organic decay, with outflows in 2024 amounting to approximately $43.2 billion, a significant reduction from the previous year’s outflows.

On the analyst front, Keefe, Bruyette & Woods adjusted its price target on T. Rowe Price, increasing it to $113 from $111, while retaining a Market Perform rating. This adjustment follows the company’s recent financial report, which indicated higher-than-expected operating expenses and compensation costs. Despite these challenges, T. Rowe Price’s collaboration with Aspida and potential product collaboration with Ares were acknowledged as positive developments, albeit their impact is not yet substantial. These are recent developments, and their implications on T. Rowe Price’s financial future remain to be seen.

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