01-30-2022, 12:00 PM
(01-29-2022, 11:26 AM)fenders53 Wrote: Now that we have a forum TROW club, please share any info you run across. The only reason I can find for the dip is a reduction in assets undermanagement. They are paid fees on that number. Let's pretend nobody panic sells their 401K but the market dips 15% and stays there awhile. Now they are collecting fees on 15% less AUM. That makes sense, and the market actually should discount it, but the freefall in price does seem way overdone.
TROW is super interesting to me -- by the numbers is it a great buy at these prices. But it does seem to fall in that bucket of perpetually low p/e stocks (along with things like AFL and BEN). One of the best ways to succeed with DG investing is to buy low p/e dividend growers, and then enjoy the increasing dividend stream, while you quietly get rich off the p/e expansion.
But some stocks never get the p/e expansion. I've been waiting on AFL since 2012. Happy to keep holding it; I think it is among the safest in my stable. But I don't think the market is going to wake up to its charms and bid it up to a p/e of 20. I think TROW might be this as well. A safe and reliable performer, but you're not getting some fantastic bargain that will mean-revert or p/e expand in the foreseeable future. (Though I'd be happy to be wrong!)
All that to say that I'm happy to add this one on the dips, but I doubt it will ever be a major pillar of my portfolio. Maybe Fenders has it right -- maybe these are ideal candidates for cash-secured puts?