In the past quarter, 27 hedge funds have this financial stock in their portfolios, up from 24 in the previous quarter. The shares have a current dividend yield of 3.55%, paid quarterly.
T. Rowe Price Group, Inc. (TROW)
From Pad System Report
With stocks so cheap, we will add another company to our portfolio. How cheap is the market? We estimate the VL MAP is now at or above 150% at today’s close. (The VL MAP in the print edition of Value Line shows 120%, but that is based on week-old prices.) Remember, however, VL MAP reached 185% in the Great Recession, and in 1974, after a 6-year bear market, was even higher (230%).
Our choice to add now is T. Rowe Price, a large mutual fund group with almost $1 trillion under management (before the recent collapse of course). Although smaller than no-load industry leader Vanguard, T. Rowe is still well-positioned as Americans’ retirement holdings grow in the long run.
It is a compelling buy at its current price, with A+ financial strength, and “1” rankings for both year-ahead performance and safety. 3-5 year appreciation potential is 165-200, about 100% to the low end of the range, and it pays a nice dividend.
RECOMMENDATION: The Model Portfolio will buy 350 shares of T Rowe Price (TROW) at tomorrow’s opening. Continue to hold cash reserves of at least 40%.
Daniel A. Seiver, PAD System Report, www.padsystemreport.com, Dept. of Finance, S.D.S.U, San Diego, CA 92181, March 23, 2020