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T. Rowe Price Rewards Shareholders With a 2.4% Dividend Increase
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Key Takeaways
TROW announced a $1.30 per share quarterly dividend, up 2.4%, to be paid out on March 30.
T. Rowe Price marks its 40th year of annual hikes, with a 5.43% forward yield and a 52% payout ratio.
TROW backs dividends with buybacks, returning about $625M in 2025, with $3.38B cash and $2.3B liabilities.
T. Rowe Price Group, Inc. (TROW - Free Report) board of directors announced a quarterly dividend of $1.30 per share, representing a 2.4% increase from the prior payout. The dividend will be paid out on March 30, 2026, to shareholders of record as of March 16.
Last year, in February, the company increased its quarterly dividend by 2.4% to $1.27 per share. Over the past five years, TROW has increased its dividend five times. Considering the recent hike, it marks the company’s 40th consecutive year of raising its dividend annually since its initial public offering.
Based on Monday’s closing price of $95.81, TROW has a forward dividend yield of 5.43%, significantly higher than the industry average of 1.69%. The company has delivered a five-year annualized dividend growth rate of 3.49% and maintains a payout ratio of 52%, reflecting its focus on consistent capital distribution to shareholders.
Beyond dividend increases, T. Rowe Price continues to reward shareholders through an active share repurchase program. In March 2020, TROW’s board of directors authorized the repurchase of 24.1 million shares, which was expanded by nearly 15 million shares in December 2020, lifting the total authorization to 39.1 million shares. The ongoing program enabled the company to return approximately $625 million through share buybacks in 2025.
TROW also maintains a strong balance sheet. As of Dec. 31, 2025, the company had a total liability of $2.3 billion, which was backed by $3.38 billion in cash and cash equivalents. This strong liquidity and earnings consistency support ongoing dividends and opportunistic share repurchases.
Over the past six months, shares of T. Rowe Price fell 9% compared with the 11.5% decline of the industry.
Image Source: Zacks Investment Research
T. Rowe Price Group currently carries a Zacks Rank #4 (Sell).
In January, Hancock Whitney Corporation’s (HWC - Free Report) board of directors announced a regular quarterly dividend of 50 cents per share, making a 11.1% increase from the previous payout. The dividend will be paid on March 16, 2026, to shareholders of record as of March 5, 2026.
HWC has maintained an uninterrupted quarterly dividend since 1967. Over the past five years, HWC increased its dividend four times, with an annualized dividend growth rate of 14.09%. It has a payout ratio of 31%.
Likewise, The Charles Schwab Corporation (SCHW - Free Report) hiked its quarterly cash dividend by 19% to 32 cents per share. The dividend will be paid out on Feb. 27 to shareholders of record as of Feb. 13, 2026.
Over the past five years, SCHW has increased its dividend five times, with an annualized dividend growth rate of 10.09%. It has a payout ratio of 22%.
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T. Rowe Price Rewards Shareholders With a 2.4% Dividend Increase
Key Takeaways
T. Rowe Price Group, Inc. (TROW - Free Report) board of directors announced a quarterly dividend of $1.30 per share, representing a 2.4% increase from the prior payout. The dividend will be paid out on March 30, 2026, to shareholders of record as of March 16.
Last year, in February, the company increased its quarterly dividend by 2.4% to $1.27 per share. Over the past five years, TROW has increased its dividend five times. Considering the recent hike, it marks the company’s 40th consecutive year of raising its dividend annually since its initial public offering.
Based on Monday’s closing price of $95.81, TROW has a forward dividend yield of 5.43%, significantly higher than the industry average of 1.69%. The company has delivered a five-year annualized dividend growth rate of 3.49% and maintains a payout ratio of 52%, reflecting its focus on consistent capital distribution to shareholders.
Beyond dividend increases, T. Rowe Price continues to reward shareholders through an active share repurchase program. In March 2020, TROW’s board of directors authorized the repurchase of 24.1 million shares, which was expanded by nearly 15 million shares in December 2020, lifting the total authorization to 39.1 million shares. The ongoing program enabled the company to return approximately $625 million through share buybacks in 2025.
TROW also maintains a strong balance sheet. As of Dec. 31, 2025, the company had a total liability of $2.3 billion, which was backed by $3.38 billion in cash and cash equivalents. This strong liquidity and earnings consistency support ongoing dividends and opportunistic share repurchases.
Over the past six months, shares of T. Rowe Price fell 9% compared with the 11.5% decline of the industry.
Image Source: Zacks Investment Research
T. Rowe Price Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Steps by Other Finance Firms
In January, Hancock Whitney Corporation’s (HWC - Free Report) board of directors announced a regular quarterly dividend of 50 cents per share, making a 11.1% increase from the previous payout. The dividend will be paid on March 16, 2026, to shareholders of record as of March 5, 2026.
HWC has maintained an uninterrupted quarterly dividend since 1967. Over the past five years, HWC increased its dividend four times, with an annualized dividend growth rate of 14.09%. It has a payout ratio of 31%.
Likewise, The Charles Schwab Corporation (SCHW - Free Report) hiked its quarterly cash dividend by 19% to 32 cents per share. The dividend will be paid out on Feb. 27 to shareholders of record as of Feb. 13, 2026.
Over the past five years, SCHW has increased its dividend five times, with an annualized dividend growth rate of 10.09%. It has a payout ratio of 22%.