Where does T. Rowe Price Group, Inc. rank after its 4% announced dividend increase?

top-100

TROW

T. Rowe Price Group Incorporated announced a regular quarterly dividend of $0.54, a 4 percent increase from the prior rate of $0.52 per share. The dividend will be paid at the new higher rate on March 30, 2016, to shareholders of record at close of business on March 16, 2016. T. Rowe Price Group Inc. is a member of the Top 100 dividend growth candidates.

 

Date Quarterly Dividend
3/16/2016 0.54
12/14/2015 0.52
9/11/2015 0.52
6/11/2015 0.52
4/7/2015 2
3/12/2015 0.52
12/12/2014 0.44
9/11/2014 0.44
6/11/2014 0.44
3/12/2014 0.44
12/12/2013 0.38
9/11/2013 0.38
6/11/2013 0.38
3/11/2013 0.38
12/12/2012 0.34
9/11/2012 0.34
6/12/2012 0.34
3/13/2012 0.34
12/12/2011 0.31
9/12/2011 0.31
6/10/2011 0.31
3/11/2011 0.31
12/10/2010 0.27
9/10/2010 0.27
6/10/2010 0.27
3/12/2010 0.27

Analysis of T. Rowe Price Group Inc. is based upon our five key criteria, which include; 

Category Value Score
Dividend Yield 3.04% 122
Dividend Growth (3-6 year avg) 5.5%  73
Forward P/E 12.28  45
S&P Financial Rating A  160
Beta 1.10  200
Total Score    600

Additional Information on P/S ratio and historical yield;

 

Price 2/18/16 % Yield 6 Year Div. Growth Rate  BV 2016 P/BV Ratio 10 yr P/BV  Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$69.43 3.04% 7.5% 18.15 3.73 2.20 6.24 3.17% 1.52%

Positives;

  • T. Rowe Price maintains a 3 year dividend growth rate of 5.5%.
  • T. Rowe Price has paid out a dividend consecutively for the past 20 years.
  • T. Rowe Price maintains a credit rating of A. This is investment grade
  • T. Rowe Price is trading at a low forward PE ratio.

Negatives;

  • T. Rowe Price trades at a slightly elevated historical price/sales (P/S) ratio.
  • T. Rowe Price maintains a beta of 1.30, higher than the average company.

Based upon its above average yield, low P/E, and continuity in steep dividend increases, T. Rowe Price qualifies as one of our Top 100 Dividend Stocks

 

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articlesT. Rowe Price Group Inc. Dividend Yield Chart (Click to enlarge) TROW2

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