T. Rowe Price (TROW) should be on the watch list of most if not all dividend growth investors. The company is a successful asset management firm that has grown its assets under management (AUM) to ~$1T+ since the last recession. Concurrently, revenue and EPS have grown rapidly that in turn has permitted increases in the dividend. But the stock price peaked at $126.24 in mid-June this year and is down ~25% since then, putting it squarely in correction territory. The drop in stock price has lowered the PE ratio (FWD) to ~12.5, which is below the market average and down from over ~20 in mid-June. Furthermore, the dividend yield is ~2.9%, which is greater than the average yield for the S&P 500. The yield is typically between 2% and 2.5% since the last recession and last traded over 3% between mid-2016 and mid-2017. The company is plainly cheap by the aforesaid valuation metrics. Let's examine why this stock should be on your watch list and why I will be buyer if a buying opportunity presents itself.

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