10 Best Dividend Growth Stocks to Buy and Hold Now

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

5-Year Annual Dividend Growth Rate: 11.01%

T. Rowe Price Group, Inc. (NASDAQ:TROW) is an investment management company that offers a wide range of related services through its subsidiaries. The company also manages various funds, accounts, and retirement plans. There is no doubt in the fact that the company operates in a fluctuating business environment due to its revenue model, which relies on charging fees to manage investments for its clients. These fees are typically tied to assets under management (AUM), meaning the company’s earnings can vary based on changes in the value of the assets it oversees for its customers. However, T. Rowe Price Group, Inc. (NASDAQ:TROW), with its extensive history, has developed resilience and expertise in navigating the fluctuations and challenges of Street volatility over the years.

In May, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported growth in its AUM to $1.54 trillion from $1.49 trillion in April end. The management attributes this growth to favorable market conditions. However, the main reason to consider the company in your investment portfolio is that it has no long-term debt on its balance sheet. This financial strength provides the company with significant flexibility to sustain its business operations and maintain dividends regardless of market cycles.

In the first quarter of 2024, T. Rowe Price Group, Inc. (NASDAQ:TROW) reported revenue of $1.74 billion, up from $1.53 billion during the same period last year. The company’s net operating income jumped to $586.6 million, from $484.2 million in the prior year period. The company also remained committed to its shareholder obligation during the quarter, returning $365 million to investors through dividends and share repurchases.

T. Rowe Price Group, Inc. (NASDAQ:TROW), one of the best dividend aristocrat stocks, holds a 38-year track record of consistent dividend growth. The company’s current quarterly dividend comes in at $1.24 per share with an impressive dividend yield of 4.36%, as of July 2. In the past five years, it has raised its payouts at an annual average rate of over 11%.

As of the end of Q1 2024, 24 hedge funds in Insider Monkey’s database owned stakes in T. Rowe Price Group, Inc. (NASDAQ:TROW), compared with 32 in the previous quarter. These stakes have a total value of more than $938 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q1.