T. Rowe Price Group, Inc. (NASDAQ:TROW) is one of my favorite asset managers. Most of the other ones I like are privately held, like Vanguard and Fidelity. However, TROW is publicly traded, allowing small investors to hold shares of a successful company in the asset management industry. Currently, TROW has an attractive valuation, trading below its average P/E ratio in the past decade, and is now yielding 4%+.
Asset manager stocks have been hit hard during the 2022 bear market because revenue and profitability are tied to stock prices. TROW’s stock price is down nearly 39% year-to-date as of this writing. But the stock’s historical declines during down markets are well known. In any case, TROW has an attractive valuation, trading below its average P/E ratio in the past decade, and is now yielding 4%+. The combination does not occur often. Furthermore, TROW is a well-known Dividend Aristocrat and Dividend Champion. Therefore, I view TROW as a long-term buy.
Overview of T. Rowe Price (TROW): Attractive Valuation and 4%+ Dividend Yield
T. Rowe Price was founded in 1937 and is headquartered in Baltimore, Maryland. The firm operates globally, with offices in major financial centers worldwide. The company offers retirement plans, mutual funds, and sub-advisory services to retail investors and institutions. TROW offers equity, fixed income, and multi-asset funds but focuses mainly on equity funds. In addition, the firm recently acquired Oak Hill Associates, expanding into alternate strategies and private markets. TROW had about $1.4 trillion in assets under management (AUM) at the end of May 2022. Total revenue was ~$7,708 million in the last twelve months and ~$7,672 million in 2021.
TROW has dramatically increased revenue and earnings per share in the past decade, pointing to its success as an asset manager focusing on retirement plans. Revenue has more than doubled from about $3.02 billion to around $7.71 billion…
Please read the complete article at my profile on Seeking Alpha for T. Rowe Price (TROW): Attractive Valuation and 4%+ Dividend Yield.
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