BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ:TROW), a global asset management firm, has declared a quarterly dividend of $1.24 per share. The dividend is payable on December 27, 2024, to shareholders of record at the close of business on December 13, 2024.
The company, founded in 1937, is recognized for its expertise in retirement planning and active management across various investment classes, including equity, fixed income, alternatives, and multi-asset capabilities. With a focus on long-term investment strategies and a culture centered on integrity, T. Rowe Price prioritizes its clients' interests, serving millions of individuals and institutions worldwide.
As of September 30, 2024, T. Rowe Price manages approximately $1.63 trillion in assets under management, with about two-thirds of these assets tied to retirement. The firm's commitment to independent proprietary research and investment excellence has contributed to its reputation as a leader in the financial industry.
This financial update is based on a press release statement from T. Rowe Price Group.
In other recent news, T. Rowe Price announced an increase in their third-quarter 2024 financial results, with assets under management (AUM) reaching $1.63 trillion, a 3.9% increase from the previous quarter. Despite a net outflow of $12.2 billion, the company reported an 18% rise in adjusted earnings per share (EPS) to $2.57. The firm's active ETF franchise and innovative retirement solutions were highlighted as growth areas by CEO Rob Sharps, while CFO Jen Dardis noted the strong performance of the target date franchise and the repurchase of $71 million in shares.
T. Rowe Price is looking at reducing net outflows in 2024 and has returned over $1.1 billion to shareholders in the first nine months of the year. The company is also preparing for strategic investments in 2025, particularly focusing on retirement and alternative strategies. The firm plans to align expense growth with revenue growth, targeting a range of 6% to 8% for 2025.
In terms of recent challenges, the company acknowledged the disappointment of the third-quarter net outflows and indicated a sizable termination notification affecting a mandate that may impact future outflows. However, they reported robust net inflows in the target date franchise totaling $3.6 billion and nearly $1 billion in inflows in the ETF business. The company is confident in the strength of their research strategy and anticipates positive trends in active equities and mutual funds, with further improvements expected in 2025.
InvestingPro Insights
T. Rowe Price Group's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 4.51% and has maintained dividend payments for an impressive 39 consecutive years. This consistency in dividend distribution underscores T. Rowe Price's financial stability and commitment to returning value to shareholders.
The asset management firm's financial health is further reflected in its robust profitability metrics. With a P/E ratio of 13.24, T. Rowe Price is trading at a relatively attractive valuation compared to its earnings potential. This is particularly noteworthy given the company's revenue growth of 8.56% over the last twelve months, suggesting a potential opportunity for value investors.
InvestingPro Tips highlight that T. Rowe Price has a perfect Piotroski Score of 9, indicating strong financial performance across various metrics. Additionally, the company's liquid assets exceed short-term obligations, providing a solid foundation for its ongoing operations and dividend commitments.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into T. Rowe Price's investment potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.