T. Rowe Price continues to grow revenue and earnings even in a choppy flow environment, thanks to its broad product set and strong retirement positioning. The earnings engine shows operating leverage: as long as markets cooperate modestly and outflows don’t accelerate, mid‑single‑digit revenue growth can translate into double‑digit EPS growth.
The balance sheet remains very strong, and the company continues to return significant cash to shareholders while still investing in growth areas like multi‑asset, retirement, and alternatives. The 40‑year dividend‑increase streak and conservative payout ratio give comfort that the dividend is sustainable even if flows remain under pressure for a time.
The stock trades at just 10.7 times the company’s forward earnings forecast. That’s a conservative valuation for a capital‑light, high‑cash‑conversion business with room for attractive long‑term total returns.
T. ROWE PRICE GROUP INC. (Nasdaq symbol TROW; www.troweprice.com) is a leading seller of mutual funds and wealth management services.
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’s fee income rises and falls with the value of the mutual funds and other securities it manages. Assets under management (AUM) were $1.71 trillion as of March 31, 2026.
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The company’s revenue in the first quarter of 2026 increased 5.3%, to $1.86 billion from $1.76 billion a year earlier. Revenue rose due to higher investment advisory fees driven by a 9.6% increase in average assets under management.
Excluding one-time items, earnings increased 10.3%, to $562.0 million from $509.3 million. On fewer shares outstanding, earnings per share improved at a faster pace, rising 13.0%, to $2.52 from $2.23. Earnings rose due to higher revenue growth from higher average assets under management, expense management programs, and a lower effective tax rate.
T. Rowe Price trades at a low valuation along with a high yield
With the March 30, 2026, payment, T. Rowe Price raised your quarterly dividend by 2.4%. Investors now receive $1.30 a share instead of $1.27. The new annual rate of $5.20 a share yields a high 4.8%. The company has now increased its annual dividend for 40 consecutive years.
Including this latest increase, T. Rowe Price’s dividend rose by an average of 3.8% annually over the past five years. The company’s TSI Dividend Sustainability Rating is Above Average
In 2026, T. Rowe Price’s earnings could rise 4% to $10.07 a share, and the stock trades at an attractive 10.7 times that forecast.
Recommendation in Dividend Advisor: T. Rowe Price Group Inc. is a buy.
