C vs TROW: Dividend Yield, Growth & Safety Comparison
Citigroup Inc (C) and Price T Rowe Group Inc (TROW) are both in the Financials sector, making them natural rivals for dividend investors. C edges ahead on yield at 1.90% versus TROW's 1.31%. For dividend growth, C leads with a 5-year CAGR of 11.0% versus TROW's -8.7%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | C | TROW |
|---|
| Dividend Yield | 1.90% | 1.31% |
| Annual Dividend | $2.32 | $1.27 |
| 5-Year CAGR | 11.0% | -8.7% |
| Payout Ratio | 33% | 55% |
| Consecutive Years | 0 | 3 |
| Price | $110.67 | $93.63 |
Yield Comparison
Citigroup Inc (C) currently yields 1.90%, which is modest for the broader market. That's 0.59% more than Price T Rowe Group Inc (TROW), which yields 1.31%. In dollar terms, C pays $2.32/share annually versus TROW's $1.27/share.
Dividend Growth
Over the past five years, C has grown its dividend at a 11.0% CAGR compared to TROW's -8.7%. C: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 11.0% and the 10-year rate of 22.6%. TROW: Dividend growth is accelerating — the 3-year CAGR of 2.0% exceeds the 5-year rate of -8.7% and the 10-year rate of 10.0%.
Dividend Safety
C's dividend safety is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. TROW's dividend safety is rated "Safe." The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.3x. C's payout ratio of 33% is more conservative than TROW's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in C generates approximately $190/year in dividend income, compared to $131/year from TROW — a difference of $59/year. At $100,000, that gap widens to $590/year.
Verdict
- Best for income: C
- Best for growth: C
- Best for safety: C
Frequently Asked Questions
Which has a higher dividend yield, C or TROW?
Citigroup Inc (C) has a higher dividend yield of 1.90% compared to Price T Rowe Group Inc (TROW) at 1.31%.
Is C or TROW a better dividend growth stock?
Citigroup Inc has the stronger dividend growth with a 5-year CAGR of 11.0%, compared to Price T Rowe Group Inc's -8.7%.
Which is safer for dividend income, C or TROW?
Citigroup Inc's dividend safety is rated "Safe" while Price T Rowe Group Inc is rated "Safe." The payout ratio of 33% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.0x. The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.3x.
How much income does $10,000 in C vs TROW generate?
A $10,000 investment in C generates approximately $190/year in dividends, while the same amount in TROW generates about $131/year.
Which has a lower payout ratio, C or TROW?
Citigroup Inc has a lower payout ratio of 33% compared to Price T Rowe Group Inc's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
C vs TROW: which is better for retirement income?
It depends on your priorities. C for current income, C for dividend growth, C for safety. Many retirement investors hold both for diversification.
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