Portfolio Update
The FiveTwenty portfolio received $32.32 in dividends in the past week. OZK paid their quarterly dividend during the week.
| Past Week Dividend | $32.32 |
| Current Quarter Dividend (Q3 2022) | $178.18 |
| LifeTime Dividend | $4,785.34 |
| Estimated Annual Dividend | $5,857.32 |
The capital allocation for the week of 07/24/2022 to 07/30/2022 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 7 of 2022, the company reported Q1 2022 earnings on 04/28/2022. In addition, the share price decreased 16.1% from $144.25 to $121.08 during the period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 36 years | 36 years | |
| Yield | 3.77% | 2.92% | 2.3% |
| Payout Ratio | 36.86%1 | 36.59% | |
| P/E | 9.791 | 11.27 |
1 computed using TTM adjusted EPS of $12.37 as of Q1 2022
Q1 2022 earnings report
Did TROW’s latest earnings report raise any warning flags?
Despite significant losses experience by the stock market during Q1 2022, TROW managed to grow revenues 2% compared to Q1 2021. However, adjusted net income decreased 13.9%, and adjusted EPS were 13% lower than in Q1 2021.
| Revenue (in millions) | Adj. Net Income (in millions) | Adj. EPS . | |
| Q1 2021 | $1,826.8 | $712.0 | $3.01 |
| Q1 2022 | $1,863.0 | $616.9 | $2.62 |
| % Change | 2% | (13.9)% | (13)% |
Additional noteworthy developments during the quarter:
- As part of the earnings report, TROW reported net outflows $5.3 billion during the quarter. Multi-asset, fixed income, and alternative product reported net inflows which only partially offset the outflows in equity strategies.
- On 07/13/2022, TROW reported preliminary month-end AUM of $1.31 trillion as of 6/30/2022.
Thesis
Why are we adding to our position in TROW?
With the stock market continuing to decline in the first half of 2022, TROW’s share price has been hit hard. While the economic conditions do represent strong head winds for the company in the near future, we are confident in the long term prospects of the company and the stability of its dividend payout.
Therefore, we view the current weakness in share price as an opportunity to build our position in the company.
Previous Articles
- 2022 Week 7: T. Row Price Group (NASDAQ: TROW)
- 2022 Week 3: T. Row Price Group (NASDAQ: TROW)
- 2021 Week 8: T. Row Price Group (NASDAQ:TROW)
Additional Research
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