Friday, April 9, 2021

Recent buy: TROW

A few days ago I added to my existing position in T. Rowe Price (ticker: TROW). I purchased my first 20 shares back in 2016 when the dividend yield was around 2,9%. The Price/Earnings-ratio at the time of my first purchas was around 17,5x. In those five years the quarterly dividend has exactly doubled, and the share price followed suit. The shares of TROW outperformed the S&P500 by a wide margin. Needless to say I am more than satisfied with this investment.

Currently TROW is valued more or less at the same P/E-ratio albeit with a slighly lower dividend yield. The company is firing on all cylinders, has improved its net income margin, decreased the number of oustanding shares by almost 10% and still has no debt whatsoever. Obviously the performance was boosted by increasing share prices accross the board.

Even though my position in TROW was already slightly bigger than average, I decided to increase my position by 50% by purchasing another 10 shares for $ 176,70 per share. This purchase added about $43  to my forward dividend income which currently stands at about € 2.060 before tax.

What do you tink of my purchase of TROW?

1 comment:

  1. I have TROW jn my dividend portfolio. Looking forward to keep on adding in the near future.