About T. Rowe Price Group
Beyond running a leading line of mutual funds, investment firm T. Rowe Price has helped investors by increasing dividends since 1987.
Photo courtesy David Ohmer/flickr.com.
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.
In 2013, the T. Rowe Price Group earned $1.05 billion on $3.5 billion in revenues. Both figures were up nearly 20% from 2012.
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 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 2014, T. Rowe Price increased the stock’s quarterly dividend by 15.79% to 44 cents per share from 38 cents per share. T. Rowe Price’s next dividend increase is expected in March 2015.
T. Rowe Price has an excellent long-term record of dividend growth. In 17 of the last 22 years, the company has increased the annual dividend by at least 11%. In fact, T. Rowe Price is one of the few Dividend Aristocrats that has quadrupled its stock’s dividend payout over the last 10 years. The company has amassed a 5-year compounded annual dividend growth rate (CADGR) of 11.97% and a 10-year CADGR of 15.97%. The dividend growth rate over the very long term is even higher, with 20-year and 25-year CADGRs of 17.60% and 17.83%, respectively.
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. 100 shares of T. Rowe Price stock purchased when the company increased its dividend for the 25th consecutive year in 2011 would have collected a total of $544 in dividends since then.
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)