Morningstar Rating

Fund Research and Analysis

by Harry Milling
T. Rowe Price Dividend Growth focuses on income without forgetting price appreciation.

Even at a time when firms are eliminating their dividends amid profit declines, 65% of the holdings at this fund and its sibling, T. Rowe Price Growth & Income PRGIX, still need to be paying dividends, and holdings overall need to be generating above-average profit growth.  Read more 

Kudos

Solid returns earned with moderate volatility.
Below-average expenses.
Manager is an experienced investor. Read more 

Risks

Emphasis on dividend-paying stocks can backfire when more-speculative fare is in vogue. Read more 

Strategy

Manager Tom Huber looks for reasonably priced stocks of companies that deliver increasing dividends. He is drawn to market leaders with high returns on equity and capital. Although Huber's focus on stocks with increasing dividends gives the fund a value bent, the fund's broad-based portfolio places it in the large-blend camp.  Read more 

Management

Tom Huber has led this fund since March 2000. Huber has been an analyst at T. Rowe Price since 1994. A seven-member advisory committee oversees Huber's efforts. In March 2007, Huber also took charge of T. Rowe Price Growth & Income PRGIX, which employs a similar strategy but whose emphasis on dividends is lighter.  Read more 

Inside Scoop

This fund focuses on income-producing blue chips that are trading at attractive prices. This approach has led to strong long-term results with moderate volatility, making it core-holding material.  Read more 

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