T. Rowe Price
T. Rowe Price (TROW +0.51%) might not be the first stock you think of when you think of investment managers, but it should be the first when you think of dividend stocks in the sector.
T. Rowe Price has increased its dividend for 40 years in a row, which covers not only the last two recessions but also the dot-com recession of the early 2000s, the Gulf War recession of the early 90s, and the Black Monday stock market crash in 1987.
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NASDAQ: TROW
T. Rowe Price Group
Premium Feature
Moneyball Superscore
61/100
Today’s Change
(0.51%) $0.53
Current Price
$102.93
Key Data Points
Market Cap
$22BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$102.62 – $103.75
52wk Range
$85.22 – $122.00
Volume
344.3K
Avg Vol
1.9M
Gross Margin
79.54%
Dividend Yield
5.05%
What makes T. Rowe Price an elite dividend stock is its clean balance sheet. The company carries virtually no debt, which means it typically has ample capital available, regardless of market conditions, to maintain its dividend.
It is currently paying out a ridiculously high yield of 4.89% at a payout ratio of 49%.
Franklin Resources
Franklin Resources (BEN +1.57%) is the holding company for Franklin Templeton Investments, among other money management firms. T. Rowe Price, it has a long streak of increasing its dividend, doing so for 29 straight years. Currently, it pays out a high yield of 3.92% with a payout ratio of 46%.
Franklin has been able to navigate the market’s ups and downs and maintain its dividend because of its balanced, diversified structure. It owns multiple investment managers across equity, fixed income, and alternative strategies, which have allowed it to float steadily, maintaining decent cash flows in any market.
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NYSE: BEN
Franklin Templeton
Premium Feature
Moneyball Superscore
61/100
Today’s Change
(1.57%) $0.52
Current Price
$33.24
Key Data Points
Market Cap
$17BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$32.77 – $33.39
52wk Range
$21.11 – $36.28
Volume
632.6K
Avg Vol
4.1M
Gross Margin
73.05%
Dividend Yield
4.00%
Also, Franklin, while not on the level of BlackRock, Vanguard, and others, has significantly more ETF assets than T. Rowe Price, and that has helped it outperform over the past three- to five-year period.
M&T Bank
M&T Bank (MTB +0.70%) was one of the very few bank stocks that raised its dividend during the COVID recession. Most banks were cutting their dividends, while others managed to hold them in check. This was in line with Federal Reserve mandates, which temporarily banned buybacks and capped banks’ dividends at their level in the second quarter of 2020, when the pandemic hit.
M&T Bank maintained its $ 1.10-per-payout throughout 2020 and into 2021, then raised it to $1.20 per in Q4 2021 after the dividend cap was lifted.
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NYSE: MTB
M & T Bank
Premium Feature
Moneyball Superscore
64/100
Today’s Change
(0.70%) $1.59
Current Price
$227.60
Key Data Points
Market Cap
$33BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$224.79 – $229.07
52wk Range
$174.76 – $255.95
Volume
322.2K
Avg Vol
1.1M
Dividend Yield
2.65%
It was similarly strong during the Great Recession. The bank raised its dividend to $0.70 per in late 2007, and maintained it at $0.70 throughout 2008 and 2009 — the heart of the recession — and beyond. In fact, M&T Bank kept its dividend unchanged for nine consecutive years through 2016. It finally boosted its dividend to $0.75 per in 2017 and has raised it for the past nine years in a row.
M&T Bank was able to navigate these storms because of its conservative, risk-averse lending and underwriting, and its cautious strategy of maintaining moderate dividend payouts during the 2010s bull market. It maintained low payout ratios throughout the bull market, which gave it an ample cushion during the pandemic.
All three of these stocks would be solid bets to at least maintain their dividends if things get rocky, based on their histories.
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About the Author
Dave mainly covers financials, consumer goods, and technology stocks and ETFs. He wrote for the Fool from 2019-2023 and rejoined the Fool in 2026. In the past he’s covered mutual funds and institutional investments for Pensions & Investments, personal finance for S&P, money markets and bonds for Crane Data, and stocks for ValueWalk.
Stocks Mentioned
Franklin Templeton
NYSE: BEN
$33.24
(+1.57%)+$0.52
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
M & T Bank
NYSE: MTB
$227.60
(+0.70%)+$1.59
T. Rowe Price Group
NASDAQ: TROW
$102.98
(+0.57%)+$0.58
BlackRock
NYSE: BLK
$1,055.43
(+1.75%)+$18.19
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
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