T. Rowe Price raising its dividend by 31% boost, to 1 is payable Jan. 13

Financial services

December 18, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

Directors of T. Rowe Price Associates Inc. voted to raise the company's quarterly dividend 31 percent to 17 cents a share, the Baltimore-based mutual fund said yesterday.

Price has increased its dividend each year since it became a public company in 1987, but the 4-cent-per-share bump is larger than in past years, said George A. Roche, the company's chairman and president.

"It reflects the fact that the earnings have gone up nicely," Roche said.

Price most recently has been paying a 13-cent dividend. The new dividend will be payable on Jan. 13 to stockholders of record Dec. 29.

The company's stock closed yesterday at $63.125, down $3.25 a share. Despite that dip, Price shares have risen 45 percent this year.

Price, the country's 11th largest mutual fund company with $125 billion in assets under management, is on track for another banner year.

Its revenue rose 33 percent and net income jumped 59 percent in the third quarter to record levels as investors poured money into its mutual funds.

Revenue reached $547.8 million in the first nine months of 1997, compared with $426.3 million in the corresponding period a year earlier.

Net income was $103.7 million, compared with $70.8 million a year ago.

Pub Date: 12/18/97

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