Lately, it can feel like every investing conversation revolves around artificial intelligence, high-growth tech stocks, and whatever company made headlines this week. There’s certainly a place for innovation in a portfolio, but not every good investment needs to be flashy.
Recently, we added two positions to client portfolios that play a very different role: T. Rowe Price (TROW) and Plains GP Holdings (PAGP).
These aren’t the exciting part of the portfolio. They won’t generate cocktail party conversation like the latest AI darling, but that’s precisely their role. As part of a balanced portfolio, these dividend-paying stocks provide diversification away from technology and growth names while generating meaningful income along the way. Think of them as the ballast that keeps the ship steady.
Here’s our thinking on each position.
T. Rowe Price (TROW): A Dividend Stalwart at a Discount
T. Rowe Price has been managing money since 1937, navigating every market cycle imaginable. The company oversees roughly $1.78 trillion in assets, focusing primarily on active investment management: mutual funds, retirement accounts, and institutional portfolios.
To be clear, the company faces challenges. Like much of the mutual fund active management industry, T. Rowe Price continues dealing with the long-term shift toward passive investing. Client outflows have created pressure, and the market is aware of that.
But I believe the market may be overlooking several strengths.
First, the balance sheet is exceptionally strong. According to Value Line, T. Rowe Price carries no long-term debt and ended 2025 with approximately $6.7 billion in cash and investments. That kind of financial flexibility matters. It gives management room to invest in growth opportunities, weather difficult markets, and continue rewarding shareholders.
Second, the dividend remains attractive. The quarterly payout was recently increased to $1.30 per share, or $5.20 annually. At recent prices near $100, that works out to a yield of roughly 5.2%.
For investors looking for income, that can be meaningful.
Third, valuation appears compelling. Shares currently trade at a price-to-earnings ratio below historical norms. In simple terms, investors are paying less today for a proven business than they often have in the past.
Of course, there are risks. If markets decline sharply or outflows worsen, assets under management and fee revenue could fall.
But in our view, much of that concern is already reflected in the current stock price.
Plains GP Holdings (PAGP): High Income From a Different Corner of the Market
Plains GP Holdings gives investors exposure to the energy midstream business through its ownership interest in Plains All American Pipeline.
That may sound technical, but the concept is straightforward.
Rather than drilling for oil, midstream companies focus on moving, storing, and transporting energy products. Their revenue is often tied more to usage and infrastructure than commodity speculation.
That can make these businesses appealing for income-focused investors.
Right now, PAGP offers a dividend yield of approximately 7.2%, according to Value Line. That level of income naturally gets our attention.
The company also recently increased its quarterly dividend by 10%, which signals confidence and improving fundamentals.
There may be additional upside as well. Value Line notes investors could receive a special one-time dividend tied to the sale of Canadian NGL assets. At the same time, the company is sharpening its focus on crude oil operations, which may improve profitability going forward.
Earnings are also expected to trend higher in the coming years.
The primary risk here is energy exposure. If oil and gas activity slows significantly, volumes and earnings could come under pressure.
Still, we believe the current yield and improving outlook make that risk worth considering within a diversified portfolio.
Why We Like These Positions Together
These two companies operate in very different industries, which is part of the appeal.
T. Rowe Price gives us exposure to financial services with a strong balance sheet and attractive income. Plains GP adds substantial yield and exposure to energy infrastructure.
Together, they can help diversify a portfolio away from crowded areas of the market while generating meaningful cash flow. That’s important because successful investing is rarely about owning only the most exciting names. It’s about building a portfolio with different pieces that each serve a purpose.
Some positions are designed for growth. Others are designed for income, stability, or diversification.
In my experience, the combination matters more than any single holding.
Final Thoughts
Neither of these positions was added because we expect them to become the next market sensation.
We added them because I believe a strong portfolio should include dependable businesses that can generate income, add balance, and support long-term goals.
T. Rowe Price offers financial strength and an attractive yield at a reasonable valuation. Plains GP provides substantial current income with improving fundamentals. They may not be glamorous, but often the quieter parts of a portfolio do some of the most important work.
We’ll continue monitoring both positions closely and making adjustments when needed, so you can keep living life with an upside.
— Tom Moore | Moore Invested
________________________________________
Our mailing address is:
2 Ravinia Drive, NE Suite 1705
Atlanta, GA 30319
(404) 905-2290
