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  • T. Rowe Price Dividend Growth Fund (PRDGX)
    Ticker Symbol:
    PRDGX
    Fund Status:
    Open to new Retail investors  /  Open to subsequent Retail investments
    Fund Objective
    Quick Stats
    Fiscal Year End  December
    Morningstar Category  Large Blend
    Inception Date 12/30/1992
    Tax ID 52-1805594
    Investment Objective
    The fund's objective is to seek dividend income and long-term capital growth primarily through investments in stocks.
    Strategy
    The fund will normally invest at least 65% of its total assets in stocks, with an emphasis on stocks that have a strong track record of paying dividends or that are expected to increase their dividends over time. T. Rowe Price believes that a track record of dividend increases is an excellent indicator of financial health and growth prospects, and that over the long term, income can contribute significantly to total return. Dividends can also help reduce the fundís volatility during periods of market turbulence and help offset losses when stock prices are falling.
    Investor Profile
    Individuals seeking increasing income over time, along with capital appreciation, who can accept the price declines inherent in common stock investing. Appropriate for both regular and tax-deferred accounts, such as IRAs.
    Risk/Reward Potential*
    Click on the risk/reward spectrum below to view the funds in that category
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    Moderate
    Lower
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    The fund seeks investments that will allow its dividend growth rate to exceed the inflation rate and that can also provide capital appreciation. While a companyís stock price can go up or down in response to earnings or market fluctuations, dividends, the second component of a fundís total return, are usually more reliable. Therefore, dividend-paying stocks generally are less volatile than those paying below-average dividends or none at all.

    The fundís emphasis on dividend-paying companies could result in significant investments in large-capitalization stocks. At times, large-cap stocks may lag shares of smaller, faster-growing companies. Also, a company may reduce or eliminate its dividend. The fundís efforts to buy stocks that appear temporarily out of favor carry the risk that a stock or group of stocks may remain out of favor for a long time and may continue to decline.
    *Funds are placed in general risk/return categories based on their past performance or, for newer funds, the performance of the types of securities in which they invest. There is no assurance past trends will continue.
    See Glossary for additional details on all data elements.