| Capital
According to the firms, the strong capital position gives the company substantial financial flexibility to weather volatile markets while continuing to take advantage of opportunities that will better position it and the clients for the future. T. Rowe Price remains debt-free with ample liquidity including cash and mutual fund investment holdings of $1.7 billion. Based on the current strategic projects and plans, the company’s capital expenditures for 2011 are estimated to be about $93.0 million.
Through September 30, 2011, the company has spent $470.0 million to repurchase 8.5 million shares of common stock. These cash expenditures are funded from available liquid resources.
According to management, a broad range of portfolios continues to deliver very attractive long-term returns, but volatile markets and lower valuations have made this a tough environment for clients and the company in the near term. During the quarter under review, bond returns were mixed and global stock markets fell sharply. Furthermore, slower economic growth, the intensifying European sovereign debt crisis and the overall lack of effective decision making by political leaders in both the U.S. and Europe have heightened volatility and dampened investor confidence.
Although most world markets have rebounded at the beginning of 4Q11, volatility and a number of policy and political issues continue to cloud the outlook. The acute need for real resolutions to the sovereign debt woes of Europe, and to the unsustainable U.S. budget outlook, continues to weigh on consumer and business confidence. Without real progress, economic growth in the developed economies will likely remain subdued coupled with high unemployment. Economic growth in the emerging economies has slowed, but the long-term positive case for emerging market growth continues.
Dividend
On October 17, 2011, T. Rowe Price Group Inc. announced that its Board of Directors had declared a quarterly dividend of $0.31 per share, which will be paid on December 28, 2011 to stockholders of record as of the close of business on December 14, 2011.
On September 28, 2011, T. Rowe Price Group Inc. paid a quarterly dividend of $0.31 per share to stockholders of record as of the close of business on September 14, 2011.
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