10 Best Dividend Aristocrats with Over 3% Yield

6. T. Rowe Price Group, Inc. (NASDAQ:TROW)

Dividend Yield as of July 17: 4.15%

T. Rowe Price Group, Inc. (NASDAQ:TROW) is an American asset management company that offers a wide range of related services to institutions, individuals, and financial intermediaries. The company’s assets under management grew to $1.57 trillion at the end of June 2024, from $1.54 trillion at the end of May. According to the company’s management, favorable market conditions contributed to the growth of AUM. That said, the company also reported net outflows of $3.7 billion for the second quarter of 2024. The company indicated that while outflows are anticipated to persist through the second half of 2024, there is optimism for improvement this year due to increased sales and reduced redemptions.

T. Rowe Price Group, Inc. (NASDAQ:TROW) is a reliable option from a dividend point of view. The company’s balance sheet is strong with over $2.4 billion available in cash and cash equivalents at the end of March 2024, up from $2.06 billion in the previous quarter. That said, the company operates as an asset manager, deriving revenue from investing client funds. This business model exposes it to fluctuations in earnings driven by client inflows, outflows, and market volatility, making its earnings as unpredictable as the market itself. Despite these challenges, the company maintains a robust financial position with no long-term debt and a low debt/equity ratio of 0.03. This financial strength provides a substantial cushion, ensuring dividend stability even through market cycles.

In the first quarter of 2024, T. Rowe Price Group, Inc. (NASDAQ:TROW) returned $365 million to shareholders through dividends and share repurchases. The company offers a quarterly dividend of $1.24 per share and has a dividend yield of 4.15%, as of July 17. It has been raising its payouts consistently for the past 38 years, which makes TROW one of the best dividend aristocrat stocks on our list.

T. Rowe Price Group, Inc. (NASDAQ:TROW) was included in 24 hedge fund portfolios at the end of Q1 2024, down from 32 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $938 million.