(PUB) Investing 2015

6

Data through February 28, 2015 T. Rowe Price Dividend Growth

Ticker

Status Yield Total Assets

Mstar Category

PRDGX Open

1.2% $4,486 mil

Large Blend

Morningstar Analyst Rating 02-19-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Below Avg Highest

95% 91% 95% 95% 94% 94% 96% 96%

„

Manager Change Partial Manager Change

13.0 16.0 19.6 22.6

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

∞ ∞ ∞ ∞ ∞

Investment Values of Fund Investment Values of S&P 500

10.0

People Parent Price

7.0

NAV Total Return % +/-S&P 500 +/-Russ 1000 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 02-15

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 „ ´ˇ ¨

22.92 11.90

22.78 3.35 -1.56 -2.92 1.14 2.21

25.36 16.45

25.50

16.51

20.48 26.15 -0.31 -2.28

22.88 13.26 -1.80 -2.84

23.34

26.34 14.85 -1.15 -1.57

33.65 30.35 -2.04 -2.76

36.13 12.34 -1.35 -0.90

37.18 2.91 0.34 -7.62 0.00 2.91

-33.26 7.07

3.53 1.42 2.03 1.49 2.04 0.34 0.00 0.68 1.53 11

1.02 0.50 1.21

0.66 0.99 1.56

1.58 1.30 1.51

3.74 4.34 1.39

1.83

1.42

1.94

1.56

1.40

10.69

14.89

-34.65 5.56

24.32

11.84

12.91

28.79

10.94

23

82

14

35

15

58

60

58

69

40

35

Pillar Spectrum Positive ∞

0.25 0.00 0.78 1.21

0.26 0.65 0.75 1.09

0.35 0.77 0.72 1.48

0.38 1.25 0.69 1.40

0.35 0.30 0.73 1.71

0.30 0.00 0.72 1.72

0.29 0.00 0.68 1.47

0.45 0.00 0.67 1.77

0.41 0.22 0.66 1.37

0.47 1.16 0.65 1.33

0.00 0.00

§ Negative

¶ Neutral

. . .

Performance 02-28-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

16

23

20

16

23

14

16

10

12

13

19

2010 2011 2012 2013 2014

4.69 -11.38 10.12 10.87 13.26 5.90 0.96 -13.63 12.11 3.53 10.16 -1.90 5.64 0.61 14.85 10.48 2.76 5.05 9.31 30.35 1.49 3.94 0.08 6.41 12.34

755

773

871

884

682

1,004

1,659

2,047

2,584

3,823

4,360

4,247

Portfolio Analysis 12-31-14 Share change since 09-14 Total Stocks:115 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

T. Rowe Price Reserve In

4.06 2.08 2.02

. . . Finan Svs 30.3

1 Yr 3 Yr 5 Yr

15.02 17.37 15.35

Trailing

Total

+/-

+/- Russ %Rank Growth of

Visa Inc Class A Danaher Corp

. .

Return% S&P 500

1000

Cat

$10,000

Avg Avg

-Avg -Avg -Avg

Industrl

24.0

3 Mo 6 Mo 1 Yr

3.06 0.75 -12.42 8.36 2.24 -13.31

20 10,306 3 10,836 26 11,502 38 16,169 37 20,422 16 22,156 11 29,589

Pfizer Inc

Hlth care 24.3 11.08 1.99 Hlth care 19.9 12.40 1.93

10 Yr Incept

8.28 9.75

+Avg

UnitedHealth Group Inc

15.02 -0.49 17.37 -0.63 15.35 -0.83 8.28 0.29 7.50 2.59

-4.13 -8.81 -4.55 -0.20

McKesson Corp

Hlth care 31.3 Cnsmr Def 23.2 Finan Svs 10.7 Finan Svs 13.4

1.91 1.78 1.73 1.68 1.63 1.61

. . . . . .

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

PepsiCo Inc

Other Measures

Standard Index

Best Fit Index

JPMorgan Chase & Co Wells Fargo & Co United Technologies Corp

S&P 500

Russ 1000

Alpha

0.4

0.4

Industrl

17.9

.

Beta

0.94

0.94

State Street Corp

Finan Svs 16.3

R-Squared

97

97

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 16.33 29 0.89 39 14.51 30 0.73 45 7.40 15 0.81 56 Potential Capital Gain Exposure: 42% of assets

Thermo Fisher Scientific

Hlth care 27.6 3.76 1.57

Standard Deviation

9.07

Time Warner Inc

Cnsmr Cyc 18.6

1.52

.

Crown Castle Internation Roper Industries Inc

Comm Svs 83.3 9.67 1.47

Mean

17.37

Industrl

26.2

1.44

.

Sharpe Ratio

1.82

Merck & Co Inc

Hlth care 14.4 3.08 1.44

Texas Instruments Inc

Technology 22.5

1.33

.

Morningstar’s Take by Katie Rushkewicz Reichart, CFA 02-19-15 T. Rowe Price Dividend Growth has much working in its favor. Low costs give it an edge versus peers. It has an experienced manager in Tom Huber, who’s been at T. Rowe for more than 20 years and has run this fund since 2000. And Huber is supported by a large analyst team that remains strong despite above-average turnover the past few years.

Ross Stores Inc

Cnsmr Cyc 24.9 12.25 1.31 Hlth care 25.2 5.43 1.29

Becton Dickinson & Co American Express Co

culture and how it’s navigated through market cycles, with its cash flows presenting a margin of safety. Inclusion of such names has meant the fund’s yield has typically been below the S&P 500’s and those of other relevant benchmarks such as the Vanguard Dividend Appreciation Index. Yet the fund retains the tame risk profile of a fund focused on financially healthy dividend-paying companies. It sports a below-average Morningstar Risk rating (which emphasizes downside deviations in returns). It’s been resilient, losing only 78% as much as the S&P in market downturns under Huber. That’s helped the fund gain significantly more than the S&P and average large-blend fund on Huber’s watch, despite its tendency to look sluggish in big market rallies. The fund has a slimmer lead over the Vanguard Dividend Appreciation Index (which has only been around since 2006) and trails that benchmark on a risk-adjusted basis through January 2015. However, the merits of the fund are still sufficient to warrant a Silver Morningstar Analyst Rating.

Finan Svs 14.6

1.28

.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 35.0 Large 48.0 Mid 17.0 Small 0.0 Micro 0.0 Avg $mil: 48,727

Value Blnd Growth

Large Mid Small

Cyclical 36.98 BasicMat 5.79 CnsmrCyc12.33 FinanSvs 17.48 Real Est 1.38 Sensitive 35.08 CommSrvs 2.87 Energy 6.23 Industrl 16.91 Technlgy 9.07 Defensive27.93 CnsmrDef 8.59 Hlthcare 17.80 Utilities 1.54

. .

h r t y u j i o p a k s d f

6 4

. 13 11 . 19 16

Huber has followed a consistent process that results in a mild-mannered portfolio. As its name suggests, he looks for companies that have strong enough free cash flows and earnings streams to pay out a dividend, focusing on those that are poised to grow their payouts. Yet dividends aren’t the sole driver of the portfolio. Huber assesses a company’s fundamentals, too, and will invest in firms whose payouts are paltry or in rare cases nonexistent (two holdings didn’t pay dividends as of year-end 2014). Danaher DHR has long been a top position in the portfolio despite its relatively low payout. The cash-rich firm has historically used cash to fund acquisitions. However, Huber likes the firm’s

1 0

. . .

6 3

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

. 10 6 . 17 13 . 12 8

18.87 2.88 1.84 8.86 2.01

1.31 1.41 1.46 1.25 0.92 0.95 1.27 2.29 1.09 0.50

.

. 11 9 . 18 12

% Rel Category

2 1

.

9.83 6.76 6.65 7.45 8.89

Composition - Net

Cash 4.1 Stocks 95.6 Bonds 0.0 Other 0.3 Foreign 1.5

Address:

T. Rowe Price Dividend Gr Fund, Inc Baltimore, MD 21202 800-638-5660

Minimum Purchase: Min Auto Inv Plan:

$2500 $2500

Add: $100 IRA: $1000

Add: $100

Profitability

% Rel Category

Sales Fees:

No-load

Return on Equity Return on Assets Net Margin

21.07 7.78 13.82

1.09 1.01 1.09

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.troweprice.com

Management Fee:

0.20%, 0.15%A

(% of Stock)

12-30-92

Actual Fees:

Mgt:0.50% Dist: .

T. Rowe Price Associates, Inc.

Expense Projections: Income Distribution:

3Yr:$211 Quarterly

5Yr:$368 10Yr:$822

None

N/A

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor timely. Pastperformance is no guarantee of future results.Access updated reportsat Toorder reprints, call312-696-6100. mfb.morningstar.com.

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