TROW - Dividend Investors Need to Remember the Bad News as They Read the Good News About This High Yield Stock
2023-10-14 08:22:00 ET
Asset manager T. Rowe Price (NASDAQ: TROW) has an impressive dividend history, with an annual dividend increase in each of the past 37 years. The dividend yield today is roughly 4.6%, which is toward the high end of the company's historical yield range. There are many things to like about this iconic mutual fund company, but there's also one negative that investors need to keep an eye on.
From a big-picture perspective, T. Rowe Price's business is pretty simple to understand. Customers give it money, and it charges them a fee to manage that money. Generally, the fee is a set percentage of the assets a customer has with T. Rowe Price. The more money the company manages, the greater the fee income it generates. The less money it manages, the less it earns in fee income.
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Dividend Investors Need to Remember the Bad News as They Read the Good News About This High Yield Stock