T. Rowe Price Group a Good Pick for Growth and Retirement Options



Stockholder returns

T. Rowe Price Group has generated good returns for its investors with the strong performance of its funds. It has delivered above-average growth in terms of capital profits and dividends. The company’s dividend yield has been around 2% over the past five years. In 2014, T. Rowe declared and paid a total dividend of $1.76 per share.

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Growth and retirement option

T. Rowe Price (TROW) reported a 22% compounded increase in its net profits over the past six years. This stems from the strong growth in its assets under management and from the performance of its sponsored mutual funds. T. Rowe is expected to expand its net income at a double-digit pace as a result of more product offerings for the US and international investors. The company also has approval to market actively managed ETFs, which should add to the assets under management.

Overall, with the improved performance of international equities, the company is expected to deliver better results. If so, stockholders can expect to see a better dividend yield and higher capital returns.

T. Rowe Price Group’s dividend payout is in line with those of its competitors including BlackRock (BLK), Invesco (IVZ), Franklin Resources (BEN), Legg Mason (LM), and Affiliated Managers (AMG). Together, these companies make up 2.77% of the Financial Select Sector SPDR Fund (XLF).


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