TROW vs USB: Dividend Yield, Growth & Safety Comparison
Price T Rowe Group Inc (TROW) and Us Bancorp De (USB) are both in the Financials sector, making them natural rivals for dividend investors. USB offers a significantly higher 3.37% yield compared to TROW's 1.31%, a gap of 2.05%. For dividend growth, USB leads with a 5-year CAGR of 3.8% versus TROW's -8.7%. Both stocks carry a "Safe" dividend safety rating. USB is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | TROW | USB |
|---|
| Dividend Yield | 1.31% | 3.37% |
| Annual Dividend | $1.27 | $2.04 |
| 5-Year CAGR | -8.7% | 3.8% |
| Payout Ratio | 55% | 44% |
| Consecutive Years | 3 | 15 |
| Price | $93.63 | $57.63 |
Yield Comparison
Us Bancorp De (USB) currently yields 3.37%, which is solid for the broader market. That's 2.05% more than Price T Rowe Group Inc (TROW), which yields 1.31%. In dollar terms, USB pays $2.04/share annually versus TROW's $1.27/share.
Dividend Growth
Over the past five years, USB has grown its dividend at a 3.8% CAGR compared to TROW's -8.7%. 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%. USB: Dividend growth is slowing — the 3-year CAGR of 2.8% trails the 5-year rate of 3.8% and the 10-year rate of 7.4%.
Dividend Safety
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. USB's dividend safety is rated "Safe." The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x. USB's payout ratio of 44% is more conservative than TROW's 55%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in USB generates approximately $337/year in dividend income, compared to $131/year from TROW — a difference of $206/year. At $100,000, that gap widens to $2060/year.
Verdict
- Best for income: USB
- Best for growth: USB
- Best for safety: USB
Frequently Asked Questions
Which has a higher dividend yield, TROW or USB?
Us Bancorp De (USB) has a higher dividend yield of 3.37% compared to Price T Rowe Group Inc (TROW) at 1.31%.
Is TROW or USB a better dividend growth stock?
Us Bancorp De has the stronger dividend growth with a 5-year CAGR of 3.8%, compared to Price T Rowe Group Inc's -8.7%.
Which is safer for dividend income, TROW or USB?
Price T Rowe Group Inc's dividend safety is rated "Safe" while Us Bancorp De is rated "Safe." The payout ratio of 55% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 7.3x. The payout ratio of 44% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.3x.
How much income does $10,000 in TROW vs USB generate?
A $10,000 investment in TROW generates approximately $131/year in dividends, while the same amount in USB generates about $337/year.
Is TROW or USB a Dividend Aristocrat?
Us Bancorp De is a Dividend Contender with 15 consecutive years of increases. Price T Rowe Group Inc does not currently qualify for aristocrat status.
Which has a lower payout ratio, TROW or USB?
Us Bancorp De has a lower payout ratio of 44% compared to Price T Rowe Group Inc's 55%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
TROW vs USB: which is better for retirement income?
It depends on your priorities. USB for current income, USB for dividend growth, USB for safety. Many retirement investors hold both for diversification.
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