JPM vs TROW: Dividend Yield, Growth & Safety Comparison
Jpmorgan Chase & Co (JPM) and Price T Rowe Group Inc (TROW) are both in the Financials sector, making them natural rivals for dividend investors. JPM edges ahead on yield at 1.82% versus TROW's 1.31%. For dividend growth, JPM leads with a 5-year CAGR of 18.6% versus TROW's -8.7%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | JPM | TROW |
|---|
| Dividend Yield | 1.82% | 1.31% |
| Annual Dividend | $5.80 | $1.27 |
| 5-Year CAGR | 18.6% | -8.7% |
| Payout Ratio | 29% | 55% |
| Consecutive Years | 0 | 3 |
| Price | $301.96 | $93.63 |
Yield Comparison
Jpmorgan Chase & Co (JPM) currently yields 1.82%, which is modest for the broader market. That's 0.51% more than Price T Rowe Group Inc (TROW), which yields 1.31%. In dollar terms, JPM pays $5.80/share annually versus TROW's $1.27/share.
Dividend Growth
Over the past five years, JPM has grown its dividend at a 18.6% CAGR compared to TROW's -8.7%. JPM: Dividend growth is accelerating — the 3-year CAGR of 34.9% exceeds the 5-year rate of 18.6% and the 10-year rate of 16.5%. 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
JPM's dividend safety is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. 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. JPM's payout ratio of 29% is more conservative than TROW's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JPM generates approximately $182/year in dividend income, compared to $131/year from TROW — a difference of $51/year. At $100,000, that gap widens to $510/year.
Verdict
- Best for income: JPM
- Best for growth: JPM
- Best for safety: JPM
Frequently Asked Questions
Which has a higher dividend yield, JPM or TROW?
Jpmorgan Chase & Co (JPM) has a higher dividend yield of 1.82% compared to Price T Rowe Group Inc (TROW) at 1.31%.
Is JPM or TROW a better dividend growth stock?
Jpmorgan Chase & Co has the stronger dividend growth with a 5-year CAGR of 18.6%, compared to Price T Rowe Group Inc's -8.7%.
Which is safer for dividend income, JPM or TROW?
Jpmorgan Chase & Co's dividend safety is rated "Safe" while Price T Rowe Group Inc is rated "Safe." The payout ratio of 29% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.5x. 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 JPM vs TROW generate?
A $10,000 investment in JPM generates approximately $182/year in dividends, while the same amount in TROW generates about $131/year.
Which has a lower payout ratio, JPM or TROW?
Jpmorgan Chase & Co has a lower payout ratio of 29% compared to Price T Rowe Group Inc's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JPM vs TROW: which is better for retirement income?
It depends on your priorities. JPM for current income, JPM for dividend growth, JPM for safety. Many retirement investors hold both for diversification.
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