T. Rowe's shareholders to get bigger dividend

December 17, 1993|By David Conn | David Conn,Staff Writer

T. Rowe Price Associates Inc., the Baltimore-based mutual fund company, yesterday announced this year's version of what has become an annual gift to shareholders: an increase in the quarterly dividend.

The company said a dividend of 13 cents a share, adjusted for a recent 2-for-1 stock dividend, will be paid Jan. 14 to shareholders of record on Dec. 30. The payout is 23.8 percent higher than the current dividend of 10.5 cents a share.

Last year T. Rowe Price raised the dividend 16.7 percent, to 10.5 cents from 9 cents -- again, adjusted for the stock split.

The annual increase is a reflection of the company's continued strong gains in earnings. T. Rowe Price and most other mutual funds have profited from the investing public's thirst for yields higher than those offered by bank deposits.

In the three months ending Sept. 30, T. Rowe Price earned $12 million, or 78 cents a share, a record amount and 17 percent higher than a year earlier. With 30.76 million shares outstanding, the new dividend means the company will pay almost $4 million a quarter in dividends to its shareholders.

The announcement came after the stock market closed yesterday. T. Rowe Price's stock closed down 12.5 cents, at $28.375 a share.

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