T. Rowe Price Group announced Thursday that it would pay a special cash dividend of $2 a share and increase its regular quarterly dividend to 52 cents a share.
James A.C. Kennedy, the Baltimore-based money management firm's president and CEO, said in a statement the special cash dividend won't affect the company's ability to meet its financial needs.
"This special cash dividend is an efficient return of capital to our stockholders and reflects the healthy cash position on our balance sheet," he said. "After the special dividend payment, the company's balance sheet will remain very strong, with ample liquidity and no corporate debt."
T. Rowe shares rose $1.26 each Thursday to close at $82.97.
The special dividend is payable April 23 to stockholders of record as of close of business on April 9. The quarterly divided, up from the last quarterly dividend of 44 cents a share, is payable March 30 to stockholders of record as of close of business March 16.