Dividend Aristocrats Ranked By Yield: Top 10

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

Dividend Yield as of June 25: 4.20%

T. Rowe Price Group, Inc. (NASDAQ:TROW) is an American asset management company that provides a wide range of advisory services to its consumers. In May, the company reported a growth in its assets under management (AUM) to $1.54 trillion, from $1.49 trillion as of April end. According to the management, favorable market conditions led to an increase in AUM. However, in the first quarter of 2024, the company reported net outflows of $8 billion, which were about half the level seen during the same period last year. The company said that while the outflows are expected to continue in the second half of 2024 as well, there is optimism for improvement this year due to higher sales and lower redemptions.

T. Rowe Price Group, Inc. (NASDAQ:TROW)’s business model presents both benefits and risks. As an asset manager, the company generates revenue by investing clients’ funds, with earnings fluctuating due to client inflows and outflows and market volatility. Hence, its earnings can be as unpredictable as the market itself. However, with no long-term debt on its balance sheet and a debt/equity ratio of just 0.03, the company has a significant financial cushion, ensuring dividend stability throughout the market cycles.

T. Rowe Price Group, Inc. (NASDAQ:TROW) offers a quarterly dividend of $1.24 per share and carries a dividend yield of 4.20%. The company has raised its payouts for 38 consecutive years, which makes TROW one of the best dividend aristocrat stocks on our list. In the most recent quarter, it returned $365 million to shareholders through dividends and share repurchases.

T. Rowe Price Group, Inc. (NASDAQ:TROW) was included in 24 hedge fund portfolios at the end of Q1 2024, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of over $938 million.

While we acknowledge the potential of TROW as an investment, our conviction lies in the belief that deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is as promising as TROW but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.