Remember when I essentially said; “if it ain’t broke, don’t fix it” in November when I added to my position in Johnson & Johnson? Well, I really meant it. While there were many, many stocks on “sale” due to a horrible January, I decided to stick to what I knew- T.Rowe Price Inc.
In a market where many people are foregoing mutual funds and focusing on ETFs, TROW managed to still post excellent results in their latest quarterly earnings report. I already wrote on the merits of TROW back in September so I won’t bore you with repeated information.
I purchased 15 shares of T. Rowe Price Group Inc. (TROW) on 1/28/2016 for $68.69 per share.
Valuation
- The P/E ratio is currently 15.1 which is slightly below it’s 5 yr average. In addition, TROW P/E is currently below the broader market.
- S&P Capital IQ Valuation: $80.90
Conclusion
T. Rowe Price Group Inc. overall is an attractively valued high-quality stock, I think. They have a business model that is easy to understand, are well-respected as leaders in their industry, have a clean balance sheet and have plenty of room to grow the dividend rate. Again, a clear winner in my book!
This purchase adds $31.20 to my annual dividend income based on the current $0.52 quarterly dividend.
Full Disclosure: Long TROW
Thanks for reading.
Images: Death to the Stock Photo with graphics added by One Woman’s Worth.
