T. Rowe diversifies revenue stream

Article Excerpt

T. ROWE PRICE GROUP INC. $120 is a buy. The seller of mutual funds (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 227.3 million; Market cap: $27.3 billion; Dividend yield: 4.0%; Dividend Sustainability Rating: Above Average; www.troweprice.com) last raised its quarterly dividend by 11.1% with the March 2022 payment. The new annual rate of $4.80 a share yields 4.0%. The company’s fee income varies with the value of the assets it administers. Due to the current stock market downturn, the stock is now down 37% since the start of 2022. However, T. Rowe Price recently spent $3.4 billion to acquire Oak Hill Advisors; it arranges financing for distressed businesses unable to secure loans from traditional banks and lenders. Oak Hill helps diversify its operations. The stock is also attractive at 12.9 times the projected 2022 earnings of $9.33 a share. T. Rowe Price is a buy. buy…

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