Price boosts dividend Increase to 10 cents closes out 'another excellent year'

Area companies

December 18, 1998|By Kristine Henry | Kristine Henry,SUN STAFF

T. Rowe Price Associates Inc.'s board of directors voted to increase the company's quarterly dividend 17.6 percent to 10 cents a share, the Baltimore-based company said yesterday.

The dividend, which has been increased every year since the company went public in 1986, will be payable Jan. 12 to stockholders of record Dec. 28.

"The company had another excellent year on the market; earnings are up and we try to share it with stockholders," said Steven Norwitz, a spokesman for T. Rowe Price.

"A combination of a continually strong cash flow and good market performance is boosting assets and earnings."

Profit at the country's 10th-largest mutual fund company was $43 million in the third quarter, or 33 cents per diluted share, up 4 percent over the year-ago period.

Revenue rose 9 percent in the third quarter to $218.6 million, up from $199.8 million for the same period a year earlier.

Price has more than $135 billion in assets under management, Norwitz said, up about $5.5 billion since Sept. 30.

Last December, the company raised the dividend 31 percent to 17 cents a share -- or 8.5 cents a share after taking into account the 2-for-1 stock split in April.

T. Rowe Price shares closed at $34.25, up $1.25.

Pub Date: 12/18/98

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