Feels great getting back into the groove and buying a great business to compliment my current portfolio. TROW has been flying low in DGI community until these last several weeks. Some of the reasons it stood out as the go to stock for DGI investors is that the company has been very pro shareholder by recently announcing dividend increase of 18.1% and declaring a special one time dividend of $2.00 per share.
Founded in 1937, T. Rowe Price Group, Inc. is an asset management company that provides investment services to individuals and institutional investors worldwide. It provides retirement plans, foundations, endowments and financial intermediaries services between individuals and institutions. Through its subsidiaries it manages separate client-focused equity, fixed income, balanced portfolios, common trusts and institutional mutual funds. The company conducts in-house research to make investments and currently manages a record of $746.8 billion of assets and growing.
- Dividend Yield: 2.53%
- 3 Year Divided Growth Rate: 12.4%
- Payout Ratio: 42.9%
- P/E: 18.4
- 29 Consecutive Years of Dividend Raises
This is the second time I am initiating an acquisition this year and makes this purchase the 27th business I am vested in. It represents about 1.6% of my current portfolio. Though the big draw for me was solid fundamentals of the business and a special dividend this company declared. When properly calculated based on the purchase price, the special dividend and regular dividend comprise to be automatic return on the investment of 3% right off the bat. In other words, its like receiving 1 year and 3 months worth of dividend in just 3 months.
I purchased 12 shares for the price of $82.40 adding $24.96 to my annual income.
The 12-month dividend income increased to $2,191.
Thank you for reading & have a great day!