T. Rowe Price Group Offers a High 4.8% Yield Enhanced by a Key New Strategic Alliance

T. Rowe Price’s yield is backed by 39 consecutive years of dividend increases, providing attractive current income alongside capital appreciation potential. Meanwhile the company generates exceptional profitability.

This lets the firm maintain financial flexibility to fund growth investments while returning capital through dividends and share repurchases.

Meanwhile the transformational Goldman Sachs partnership (with that firm committing $1 billion to buy shares of T. Rowe Price) validates the company’s strategic direction and positions the firm to capitalize one of the fastest-growing segments in asset management.

The stock trades at just 10.4 times the company’s forward earnings forecast and it appears undervalued relative to its business quality, profitability profile, and strategic positioning.

T. ROWE PRICE GROUP INC. (Nasdaq symbol TROW; www.troweprice.com) is a leading seller of mutual funds and wealth management services.

T. Rowe Price’s fee income rises and falls with the value of the mutual funds and other securities it manages.

In the third quarter ended September 30, 2025, rose 6.0%, to $1.89 billion from $1.79 billion a year earlier. Earnings before unusual items increased 7.7%, to $631.7 million from $586.5 million. On fewer shares outstanding, earnings per share improved at a slightly faster pace of 9.3%, to $2.81 from $2.57.
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Thanks to the recent surge in stock markets—the major indexes continue to touch record highs—assets under management (AUM) rose 10.5%, to $1.78 trillion as of December 31, 2025, from $1.61 trillion at the end of 2024.

However, net outflows in 2025 were $56.9 billion.

T. Rowe Price’s strategic collaboration unlocks access to lucrative markets

The company recently formed an alliance with banking firm Goldman Sachs Group Inc. (New York symbol GS). Under the terms of the deal, both firms will co-create and cross-market financial services and portfolios to their high-net-worth clients. Goldman will also purchase up to $1 billion worth of T. Rowe Price’s shares. That would give it a roughly 4% stake.

T. Rowe Price last raised your quarterly dividend by 2.4% with the March 2025 payment. The new annual rate of $5.08 a share yields a high 4.8%.

The firm should earn $10.27 a share in 2026, and the stock trades at an attractive 10.4 times that forecast.

Recommendation in Dividend Advisor: T. Rowe Price Group Inc. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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