T. Rowe Price(US:TROW) ZACKSยท2024-08-21 16:45Company Overview - T. Rowe Price (TROW) is based in Baltimore and operates in the Finance sector, with a year-to-date share price change of 0.76% [3] - The company currently pays a dividend of $1.24 per share, resulting in a dividend yield of 4.57%, which is significantly higher than the Financial - Investment Management industry's yield of 2.86% and the S&P 500's yield of 1.58% [3] Dividend Performance - T. Rowe Price's current annualized dividend of $4.96 has increased by 1.6% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 10.74% [4] - The company's payout ratio stands at 58%, indicating that it distributes 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for T. Rowe Price's earnings per share for 2024 is projected at $9, reflecting a year-over-year growth rate of 18.58% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - High-growth firms or tech start-ups typically do not offer dividends, while larger, established companies are often viewed as better dividend options [7] - T. Rowe Price is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]