Stock Sell $TROW
Another one bites the dust! Once more I aim to rebalance the portfolio and get rid of the non-performers in order to seek Dividend Growth Investing perfection. I decided to go ahead and entirely sell out of my T. Rowe Price Group, Inc. (TROW) position since I believe the investment field for everyday investors is changing very rapidly. Away to the mutual funds and in with the low cost exchange trader funds (ETF). Now don’t get me wrong it is still a good investment, but I am looking for great investments.
- Changing Investment Industry
- No Longer Want to be Invested in the Sector
- Better Opportunities Elsewhere
I sold all 12.748 shares of T. Rowe Price Group, Inc. (TROW) for the price of $95.15 per share for a total recoupment of $1,212.97 subtracting of around $29.06 to my annual dividend income.
Conclusion:
The Portfolio “The Dividend Machine” has been updated with link ➡️ here.
Thank you for reading & have a great day!
I’ve been close to picking up TROW in the past, but haven’t been able to pull the trigger. I think you’ve got some solid reasoning in your decision to sell. This November, I sold a couple holdings I liked at one point but no longer do. It’s great to do some cleaning if needed. Simplify your portfolio and add/build on holdings you like more. Win/win.
I believe that TROW is done growing and if business is not growing it is dying.
Cheers!
I’ve contemplated closing my own position in TROW as well as a few select others to lock in some profits, raise some cash and put to work in better opportunities. I love the asset management business model but I share your concerns with the future of the industry. There’s definitely the potential for it to have some major disruption if investors flee en masse to lower cost options although I think many of their customers are probably the ones that would be some of the last to go the DIY route because there’s a reason they don’t want to mess with it. Maybe a company like Blackrock would be a good substitute. I think they’ve got a decent DG streak and they should be able to capture a good chunk of the move towards lower cost options. All the best.
I would love to add to my current BlackRock ownership, that business for sure is not going anywhere. No doubt in that one.
All the best to you too JC, thanks for stopping by!
I’ve been very happy with my TROW purchase. Love their balance sheet (no debt) and dividend history. The company continues to earn, grow AUM, and experience an inflow of cash for investments. For now, I’m happy and will continue to hold. But if it doesn’t match your investment strategy any more or you have a better option out there, than go for it! Just make sure you let us know what you end up buying haha
Bert
Absolutely, the company’s fundamentals and dividend growth is still there, but when I have a feeling I need to follow it and stay true to myself.
Recent acquisition coming up soon 🙂
Good hearing your thoughts Bert!
I thought about buying TROW but never did. The managed fund business is certainly in decline. It will be interesting to see how that industries reacts going forward. Tom
Exactly, it hasn’t hit these institutions yet, but it will as brokerage pricing wars continue and more and more people opt in towards ETFs. The environment will change, it will be interesting if TROW could adapt and overcome. I am not willing to find out since I don’t use their services nor interested in them. Vanguard smoke checks them by a long shot.
Take care.
Hi DV,
TROW has certainly had a nice run up here the last 6 months after treading water for a couple of years. The industry numbers certainly suggest a trend away from mutual funds toward ETFs. How long did you have the shares? I’d imagine you were able to secure a gain – short-term, long-term? Curious to know if you’ve lined up a replacement, or if you are just starting to research options.
It sure has been stuck in the mud for a long time, so this run up is a perfect opportunity for me to unload the rest of the shares in order to put working capital to a better use. So many better opportunities are out there, but I have a gut feeling about the changing investment industry and I need to be true to myself and follow it, even if I might be wrong. My initial purchase happened here: http://dividendvet.com/acquisition-10/ where I purchased the shares for $82.40 per share. Total long-term capital gain equates for about $163 so even with dividends received and some appreciation, not a great overall investment.
I did have the proceeds reinvested shortly after so please do stay tuned for that post coming very soon! It might surprise you!
Good questions!