We recommend investors diversify their Finance sector holdings beyond the big banks with smaller, high-quality firms such as T. Rowe Price. It’s a leader in its niche industry.
Notably, T. Rowe Price has a new alliance with banking firm Goldman Sachs to co-create and cross-market financial services to their clients. Goldman will also take a 3.5% stake in T. Rowe Price.
Meanwhile, the high, stable dividend provides income while potential capital appreciation looms as assets under management keep rising.
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.
Thanks to the recent rebound and move upward in stock markets—the major indexes are now at record highs—assets under management (AUM) rose 1.5% to $1.73 trillion as of August 31, 2025, from a month earlier. AUM is also up 7.6% since the end of 2024.
However, net outflows for August were $5.9 billion.
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The company will also benefit from its new alliance with banking firm Goldman Sachs Group Inc. (New York symbol GS). The deal will let both firms co-create and cross-market financial services to their clients. Goldman will also purchase up to $1 billion worth of T. Rowe Price’s shares. That would give it a 3.5% stake.
Dividend Stocks: Wealth management leader maintains four-decade payment streak
T. Rowe Price’s revenue in the three months ended June 30, 2025, fell slightly, to $1.72 billion from $1.73 billion a year earlier.
Along with revenue, as well as higher costs—for payroll and investments in new technology—earnings before one-time items decreased 2.5%, to $506.8 million from $519.7 million. Due to fewer shares outstanding, earnings per share fell 0.9%, to $2.24 from $2.26.
Despite the uncertainty over tariffs and interest rates, the company’s long-term prospects remain bright, particularly as more baby boomers retire over the next few years.
Investors can expect T. Rowe Price to earn $9.20 a share in 2025, and the stock trades at an attractive 11.3 times that forecast.
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 has maintained its dividend for 40 consecutive years. The company’s TSI Dividend Sustainability Rating is Above Average.
Recommendation in Dividend Advisor: T. Rowe Price Group Inc. is a buy.
