Posted on by FiveTwenty

2022 Week 37: T. Row Price Group (NASDAQ: TROW)

Portfolio Update

The FiveTwenty portfolio received $161.21 dividends in the past week. ADM, JNJ, and WBA paid their quarterly dividend during the week.

Past Week Dividend$161.21
Current Quarter Dividend (Q3 2022)$1,018.60
LifeTime Dividend$5,625.76
Estimated Annual Dividend$6,335.83
Dividend Scorecard

The capital allocation for the week of 09/11/2022 to 09/17/2022 will be used to add to our position in T. Row Price Group (NASDAQ: TROW)

TROW – Position Update

Since our last check-in on TROW in week 30 of 2022, the company reported Q2 2022 earnings on 07/28/2022. In addition, the share price increased 2.7% from $121.08 to $124.39 during the period.

TTMPrev. Update10-year median
Dividend Streak36 years36 years
Yield3.67%3.77%2.32%
Payout Ratio42.03%136.86%2
P/E11.4619.792
Entry Criteria Scorecard

1 computed using TTM adjusted EPS of $10.85 as of Q2 2022
2 computed using TTM adjusted EPS of $12.37 as of Q1 2022

XX earnings report

Did TROW’s latest earnings report raise any warning flags?

The poor performance of the stock marked in the first half of 2022 had a significant impact on TROW’s earning in Q2 2022. Overall, revenues dropped 21.6%, adjusted net earnings decreased 46.4%, and adjusted EPS were 45.9% lower compared to Q2 2021.

Revenue
(in millions)		Adj. Net Income
(in millions)		Adj. EPS
.
Q2 2021$1,929$779$3.31
Q2 2022$1,513$417.7$1.79
% Change(21.6)%(46.4)%(45.9)%

Additional noteworthy developments during the quarter:

  • On 08/10/2022, TROW reported preliminary month-end AUM of $1.39 trillion as of 7/31/2022. This represents a small increase from the previous month.
  • TROW returned $476.6 million to shareholders during Q2 2022 in the form on dividends and share repurchases.

Thesis

Why are we adding to our position in TROW?

We continue to regard the current depressed share price for TROW as an opportunity to add to our position at a good valuation.

Previous Articles

Photo by Joanna Wroblewska on Unsplash