Thursday, December 13, 2007

T. Rowe Price Increases Dividend 41%

T. Rowe Price (TROW) announced it was increasing its quarterly dividend by 41.2%. The new quarterly rate will be 24 cents per share versus 17 cents per share in the same quarter last year. Not counting this increase, TROW's dividend has double over the past 5-years. The 5-year average payout ratio is approximately 33%. The projected payout ratio on the new dividend is about 34% based on 2008 estimated earnings of $2.82. The payout ratio in 2003 was approximately 43%.

(click on table/chart for larger image)

T. Rowe Price dividend analysis table December 13, 2007
T. Rowe Price stock chart December 13, 2007


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