T. ROWE PRICE GROUP INC. $71 - Nasdaq symbol TROW

T. ROWE PRICE GROUP INC. $71 (Nasdaq symbol TROW; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 260.1 million; Market cap: $18.5 billion; Price-to-sales ratio: 5.7; Dividend yield: 2.1%; TSINetwork Rating: Average; www.troweprice .com) has agreed to sell its banking subsidiary, which mainly offers certificates of deposit.

The company will receive $24 million for this business when the deal closes, probably by the end of 2013. That’s just 12% of the $206.8 million, or $0.79 a share, it earned in the second quarter of 2013. However, selling the banking business will let T. Rowe Price avoid new banking regulations that could interfere with its main mutual fund and wealth management operations.

T. Rowe Price is a buy.

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Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Growth Stocks

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Spinoffs

One of the ways a company can try to unlock its own hidden value is by creating a separate company out of a corporate subsidiary. The parent company can either sell stock in the new company to the public, or spin it off—hand the stock out to its own investors.

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