Here's Why T. Rowe Price Can Keep Raising Its Dividend
This has been a difficult year for asset managers in general, with the stock market in bear market territory for most of the year. As we enter the final two weeks of 2022, a year that investors will be happy to put behind them, the Nasdaq is down about 33%, the S&P 500 is off 20%, and the Dow Jones Industrial Average is down 10% year to date.
One of the most successful asset managers during the past decade, T. Rowe Price Group (NASDAQ: TROW) has not been immune to the market's malaise -- the stock is down about 45%. But there are a few reasons that T. Rowe Price should be on investors' radars, and the biggest one is its dividend, which it has increased each year for the past 36 years, making it a Dividend Aristocrat. Here is why T. Rowe Price can keep raising its dividend.
Generally speaking, asset managers go as the market goes, since they generate fee revenue based on the size of their asset base and inflows into their funds. When markets are down 20% and 30%, depending on the index, asset totals are going to be down similarly -- and fewer new assets are going to flow into those funds.
Source Fool.com
