(PUB) Investing 2015

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7 Morningstar FundInvestor December 2015
Data through November 30, 2015 FINRA members: For internal or institutional use only.
T. Rowe Price Dividend Growth Ticker
PRDGX
Yield
1.6%
Total Assets
$4,755 mil
Mstar Category
Large Blend
Benchmark 1: Russell 1000 TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 11-10-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
4 4 4 4 4 4 4 4 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
) & * & ( ( & ( ( * & Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11-15 History
22.78 25.36 25.50 16.51 20.48 22.88 23.34 26.34 33.65 36.13 36.96 NAV
3.35 16.45 7.07 -33.26 26.15 13.26 3.53 14.85 30.35 12.34 3.65 Total Return %
-2.92 0.99 1.30 4.34 -2.28 -2.84 2.03 -1.57 -2.76 -0.90 0.88 +/- Bmark 1
-1.56 0.66 1.58 3.74 -0.31 -1.80 1.42 -1.16 -2.03 -1.35 0.64 +/- Bmark 2
1.14 1.56 1.51 1.39 1.83 1.42 1.49 1.94 1.56 1.40 1.31 Income Return %
2.21 14.89 5.56 -34.65 24.32 11.84 2.04 12.91 28.79 10.93 2.34 Capital Return %
82 14 35 15 58 60 11 58 69 40 15 Total Rtn % Rank Cat
0.26 0.35 0.38 0.35 0.30 0.29 0.34 0.45 0.41 0.47 0.47 Income $
0.65 0.77 1.25 0.30 0.00 0.00 0.00 0.00 0.22 1.16 0.00 Capital Gains $
0.75 0.72 0.69 0.73 0.72 0.68 0.68 0.67 0.66 0.65 0.64 Expense Ratio %
1.09 1.48 1.40 1.71 1.72 1.47 1.53 1.77 1.37 1.33 1.98 Income Ratio %
23 20 16 23 14 16 10 12 13 19 . Turnover Rate %
773 871 884 682 1,004 1,659 2,047 2,584 3,823 4,360 . Net Assets $mil
Performance 11-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 5.90 0.96 -13.63 12.11 3.53
2012 10.16 -1.90 5.64 0.61 14.85
2013 10.48 2.76 5.05 9.31 30.35
2014 1.49 3.94 0.08 6.41 12.34
2015 1.77 -0.42 -5.81 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 6.40 0.92 0.34 8 10,640
6 Mo 0.25 1.10 0.46 11 10,025
1 Yr 3.80 1.27 1.05 12 10,380
3 Yr Avg 15.24 -0.86 -0.85 43 15,305
5 Yr Avg 14.03 -0.29 -0.36 21 19,282
10 Yr Avg 7.96 0.35 0.48 11 21,504
15 Yr Avg 6.45 0.99 2.81 15 25,531
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 14.15 34 0.94 43
5 Yr (estimated) 13.15 20 0.78 49
10 Yr (estimated) 7.04 10 0.85 59
Potential Capital Gain Exposure: 39% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 3.80
3 Yr 15.24 Avg -Avg QQQ
5 Yr 14.03 +Avg -Avg QQQQ
10 Yr 7.96 High -Avg QQQQQ
Incept 9.44
Other Measures Standard Index Best Fit Index
Alpha 0.0 -0.1
Beta 0.95 0.95
R-Squared 98 98
Standard Deviation 10.10
Mean 15.24
Sharpe Ratio 1.46
Portfolio Analysis 09-30-15
Total Stocks: 107
Share change since 06-30-15 Sector YTD Ret % % Assets
TT. Rowe Price Reserve Inv — — 5.06
TDanaher Corp Industrl 12.93 2.39
TPfizer Inc Hlth Care 8.80 2.34
TGeneral Electric Co Industrl 21.21 2.32
YVisa Inc Class A Finan Svcs 21.30 2.25
UnitedHealth Group Inc Hlth Care 12.85 2.16
TPepsiCo Inc Cnsmr Def 8.10 2.15
TMicrosoft Corp Technology 19.78 2.04
TJPMorgan Chase & Co Finan Svcs 9.24 2.00
TBecton Dickinson & Co Hlth Care 9.26 1.72
TThermo Fisher Scientific Hlth Care 10.82 1.70
TComcast Corp Class A Comm Svcs 6.59 1.59
YMcKesson Corp Hlth Care -8.28 1.59
TCrown Castle Internationa Comm Svcs 12.29 1.51
Roper Technologies Inc Industrl 24.39 1.51
TBank of New York Mellon C Finan Svcs 9.74 1.49
TPhilip Morris Internation Cnsmr Def 11.00 1.46
YState Street Corp Finan Svcs -6.29 1.43
YWells Fargo & Co Finan Svcs 3.20 1.43
Home Depot Inc Cnsmr Cyc 29.23 1.41
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 37.5
Large 45.8
Mid 16.4
Small 0.3
Micro 0.0
Avg $mil:
48,776
Value Measures Rel Category
Price/Earnings 18.14 1.06
Price/Book 2.57 1.11
Price/Sales 1.68 1.10
Price/Cash Flow 10.99 1.15
Dividend Yield % 2.36 1.03
Growth Measures % Rel Category
Long-Term Erngs 10.19 0.98
Book Value 5.37 0.90
Sales 7.07 1.76
Cash Flow 6.34 1.03
Historical Erngs 7.29 1.19
Profitability %
Return on Equity 18.33
Return on Assets 6.87
Net Margin 13.31
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 34.46 1.03
r BasicMat 3.23 1.12
t CnsmrCyc 11.72 0.96
y FinanSvcs 18.57 1.24
u Real Est 0.94 0.28
j Sensitive 32.65 0.82
i CommSrvs 4.09 1.02
o Energy 3.99 0.60
p Industrl 15.54 1.36
a Technlgy 9.03 0.51
k Defensive 32.90 1.23
s CnsmrDef 10.88 1.20
d Hlthcare 18.62 1.27
f Utilities 3.40 1.10
Composition - Net
Cash 5.1
Stocks 94.7
Bonds 0.0
Other 0.2
Foreign 2.2
(% of Stock)
Morningstar's Take by Katie Rushkewicz Reichart, CFA 11-10-15
T. Rowe Price Dividend Growth has several positive
attributes. A long-tenured manager, low expenses, and
good risk-adjusted results make the case for a
Morningstar Analyst Rating of Silver.
Tom Huber has run the fund since 2000. He uses a
patient, low-turnover approach that focuses mostly on
dividend-paying companies that are financially healthy
enough to sustain or grow their payouts. Beyond the
importance he places on free cash flow, he also looks for
company management teams that allocate capital with
shareholders' interests in mind, whether that's through
dividends or buybacks.
The fund is diversified across more than 100 holdings
and has broad sector exposure, though there are some
preferences.For instance,Huberhasshiedaway from the
commodity-oriented energy sector, a good call as oil
prices have slid. The fund is also typically light on
technology names versus its broad S&P 500 benchmark,
as those firms traditionally have been less likely to pay
out dividends.
This diversified nature and tendency to avoid more
speculative names in favor of dividend payers has led to
a muted risk profile. The fund has been less volatile than
the S&P 500 and peers, as measured by standard
deviation, and has performed better in market pullbacks,
including 2015's third quarter. It's outperformed the
benchmark by more than 2 percentage points annualized
during Huber's tenure and has looked quite competitive
relative to large-blend peers.
While the fund has posted impressive results versus
the broad market and peers, it hasn't gained a noticeable
edge over a dividend-focused benchmark: the fund's risk-
adjusted record is roughly in line with the Nasdaq US
Dividend Achievers Select Index since that benchmark's
2006 inception. The fund has slightly underperformed it
in market declines while edging it in more bullish
environments.
However, the fund remains a solid choice for risk-
conscious investors, and with just over $4 billion in
assets, it does not face capacity issues.
Address: T. Rowe Price Dividend Gr Fund, Inc Minimum Purchase: $2500 Add: $100 IRA: $1000
Baltimore MD 21202 Min Auto Inv Plan: $2500 Add: $100
800-638-5660 Sales Fees: No-load
Web Address: Management Fee: 0.20%, 0.15%A
Inception: 12-30-92 Actual Fees: Mgt:0.49% Dist:0.00%
Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$208 5Yr:$362 10Yr:$810
Subadvisor: None Income Distribution: Quarterly
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A