T. Rowe Price Group (TROW) manages over $800 billion in assets and has a strong and lengthy record of delivering results for its asset management clients resulting in a highly profitable business model that has yielded consistent EPS growth and a pristine balance sheet.
As a Dividend Aristocrat, TROW has used its strong performance to reward shareholders with growing dividend payments for over 25 years (currently yielding 2.8%) while still maintaining a payout ratio of only 42.8%. This payout ratio is even more impressive due to its strong share buyback program (which reduces the number of shares that dividends must be paid out on) and the fact that it is flush with cash, carries no debt, and enjoys a positive NCAV (current assets exceed total liabilities). These numbers point to continued consistent dividend growth over the long-term.
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