Monday, February 14, 2022

Recent buy: TROW

Last week I added to my existing position in T. Rowe Price (ticker: TROW). I purchased an additional 8 shares in the company.  I purchased my first 20 shares back in 2016 when the dividend yield was around 2,9%. Last year I added to my position with an extra 10 shares.

TROW was priced at $220 back in November last year. Currently the price has declined to just under $150. This is a price drop of more than 30%. The P/E-ratio is around 12x. Last year I noted that 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. The latest dividend increases were 18% in 2020 and 20% in 2021. I have nothing to complain with these kind of annual raises. The payout ratio is 34% and is still really solid.

My forward dividend annual income increases with about € 30 with this purchase.

1 comment:

  1. I am also adding up shares. I can't see any underlying data justifying the price drop of 30%.