Sunday, February 17, 2019

TROW raised its dividend by 8,6%

A few days ago T. Rowe Price (TROW) announced a quarterly dividend raise from $0,70 to $0,76. This raise of almost 9% adds just over € 4 to my annual dividend income.

I am an owner of TROW since July 2016. I purchased share for a price of around $75. Currently shares are worth over $ 97, so in price appreciation alone this position has netted me about 11% per year. However, if you add in the dividend along the ride, the total return is bumped up to 14,4%. I honestly have nothing to complain here!

The dividend has grown from $0,54 quarterly to $0,76. This is an awesome dividend growth rate of 15%. However, its payout ratio is still rather comfortable at just over 40% based on the new dividend! I therefore expect the growth to continue. Its P/E-ratio looks solid as well (13x). Together with the dividend yield of 3,1% I consider adding to this position in the near future.











So far I received 7 dividend raises in 2019. These raises combined have added almost € 20 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!

Did you like the dividend raise of TROW? Do you consider purchasing TROW at this moment? How have your dividend raises been so far in general?

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