In recent years,T. Rowe Price Group (
) has announced its dividend increases in February.
Whether investors see a dividend increase next month or not,
the odds are good that an increase will come sometime this
The financial manager and adviser is in the S&P 500
Dividend Aristocrats index. Making the list takes 25 consecutive
years of dividend increases. Through 2012, T. Rowe was at the
Recent dividend increases have been generous -- 8% in 2010,
14.8% in 2011 and 9.7% last year.
In December, the company paid a special dividend of $1 a
share. When the special dividend was announced, CEO James A.C.
Kennedy said the special dividend "should not impact the
company's ability to continue our outstanding dividend
T. Rowe Price's earnings have been on the rebound.
After recession-related earnings declines in 2008-'09,
earnings grew 45% in 2010, 15% in 2011 and are expected to have
grown 16% in 2012. The results for 2012 will be released Jan.
The five-year earnings Stability Factor is 20 on a gauge that
runs from 0 (calm) to 99 (wild).
Revenue increased 26% and 16% in 2010-'11. The Street expects
about 11% in 2012.
The company is without debt, yet return on equity was about
23% last year. Debt artificially increases ROE, so 23% is a very
generally have an ROE of 17% or higher.
After-tax margin was about 32% in Q3, the highest in at least
The industry group also is fairly strong. As of Wednesday's
IBD, the Finance-Investment Management industry group was No. 34
among 197 groups.
Clients outside the U.S. account for about 10% of assets under
Risk factors include government regulation, which can and does
impose costs. In recent years, the industry has had to deal with
Sarbanes-Oxley, Dodd-Frank and the Volcker Rule. The Volcker Rule
could push T. Rowe to dump its savings bank subsidiary. However,
T. Rowe says that such a move wouldn't be material to