Someone At T Rowe Price Really Likes Danaher Stock

I was recently screening the top ten holdings of every mutual fund that T Rowe Price offers to look for some investment ideas worth considering. When I got to the company’s more traditional funds aimed at retirees and conservative investors, I noticed one stock that kept showing up: Danaher.

It is a “Top 10 Holding” in the following four funds (if not more): Blue Chip Growth, Capital Appreciation, Growth & Income, and Dividend Growth.

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It is somewhat ill-fitting to see Danaher show up in T Rowe Price’s Dividend Growth Fund, considering that the company only pays out a dime for each share annually for a dividend yield of 0.15%. If you wanted make a schoolteacher’s salary off of your Danaher stock (~45,000 per year), you would need to own 450,000 shares of the company. At a current price of $67 per share, we’re talking an initial investment of $30,000,000+ to make that happen. Not exactly sure what that company is doing as a top holding in a Dividend Growth or Growth & Income Fund, but what do you expect when the Dividend Growth Fund’s top holding (Crown Castle International) doesn’t even pay a dividend to shareholders?

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The Butterfly Effect And Dividend Investing

Bill McClellan is a long-time writer for the St. Louis Post-Dispatch. I’ve been reading his editorial work since I was twelve years old. He is a great storyteller with a knack for capturing the big picture and summing up a particular situation or the totality of someone’s life.

Today, he wrote an article titled “Flip Side of Success For Youth Football Star” that highlights the parallel tracks of two young football stars from Kirkwood, MO.

One of them—whom you might know—is named Jeremy Maclin. He was a superstar football player as a young kid, high schooler, college student at Mizzou, and is currently a professional athlete playing for the Philadelphia Eagles.

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