T. Rowe Price Group said on February 7, 2023 that its board of directors declared a regular quarterly dividend of $1.22 per share ($4.88 annualized). Shareholders of record as of March 14, 2023 will receive the payment on March 30, 2023. Previously, the company paid $1.20 per share.

At the current share price of $120.31 / share, the stock’s dividend yield is 4.06%. Looking back five years and taking a sample every week, the average dividend yield has been 2.85%, the lowest has been 1.94%, and the highest has been 4.67%. The standard deviation of yields is 0.64 (n=237).

The current dividend yield is 1.87 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.69. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.58%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 20.31% Downside

As of February 9, 2023, the average one-year price target for the company is $95.88. The forecasts range from a low of $65.65 to a high of $118.65. The average price target represents a decrease of 20.31% from its latest reported closing price of $120.31.

The projected annual revenue for Price Rowe Group is $6,228MM, a decrease of 4.01%. The projected annual EPS is $7.33, an increase of 8.81%.

Fund Sentiment

There are 1763 funds or institutions reporting positions in T. Price Rowe Group. This is a decrease of 57 owner(s) or 3.13%.

Average portfolio weight of all funds dedicated to US:TROW is 0.3190%, a decrease of 2.2116%. Total shares owned by institutions increased in the last three months by 1.25% to 190,086K shares.

What are large shareholders doing?

Jpmorgan Chase & holds 9,544,007 shares representing 4.26% ownership of the company. In it’s prior filing, the firm reported owning 9,716,047 shares, representing a decrease of 1.80%. The firm decreased its portfolio allocation in TROW by 6.41% over the last quarter.

Fayez Sarofim & holds 9,089,062 shares representing 4.05% ownership of the company. In it’s prior filing, the firm reported owning 9,088,337 shares, representing an increase of 0.01%. The firm decreased its portfolio allocation in TROW by 77.59% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 6,719,435 shares representing 3.00% ownership of the company. In it’s prior filing, the firm reported owning 6,694,427 shares, representing an increase of 0.37%. The firm decreased its portfolio allocation in TROW by 3.29% over the last quarter.

Geode Capital Management holds 5,405,935 shares representing 2.41% ownership of the company. In it’s prior filing, the firm reported owning 5,298,246 shares, representing an increase of 1.99%. The firm decreased its portfolio allocation in TROW by 2.31% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 5,116,161 shares representing 2.28% ownership of the company. In it’s prior filing, the firm reported owning 5,029,334 shares, representing an increase of 1.70%. The firm decreased its portfolio allocation in TROW by 2.77% over the last quarter.

T. Rowe Price Group Background Information
(This description is provided by the company.)

Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. is a global investment management organization with $1.46 trillion in assets under management as of January 31, 2021. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price’s disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

This article originally appeared on Fintel

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