T. Rowe’s low p/e adds appeal

Article Excerpt

T. ROWE PRICE GROUP INC. $131 is a buy. The seller of mutual funds (Nasdaq symbol TROW; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 227.8 million; Market cap: $29.8 billion; Dividend yield: 3.7%; Dividend Sustainability Rating: Above Average; www.troweprice.com) last raised its quarterly dividend by 11.1% with the March 2022 payment, to $1.20 a share from $1.08. The new annual rate of $4.80 a share yields 3.7%. The company’s fee income varies with the value of the assets it administers. If the current market weakness persists, T. Rowe Price’s earnings will probably decline about 10% to $11.47 a share in 2022 from $12.75 in 2021. Even so, the stock remains attractive at just 11.4 times that forecast. T. Rowe Price is a buy. buy…