T. Rowe Price Dividend Growth SMA

Overview

A portfolio in pursuit of dividend growth and appreciation.

Investing in companies with a sustainable competitive advantage and likely to show consistent earnings and dividend growth over time, the U.S. Dividend Growth Equity SMA seeks to provide a growing level of dividend income, long-term capital appreciation, and a reasonable level of current income.

Strategy

• Normally invests 65% of the portfolio's total assets in common stocks of dividend-paying companies that we expect will increase their dividends over time.
• Employs a conservative, growth-at-a-discount investment approach with an emphasis on dividend growth
• Identifies companies with a sustainable competitive advantage that are likely to generate consistent earnings and dividend growth, favoring those that generate excess cash flow with attractive valuations and solid cash flow to support dividend increases.
• The portfolio consists of 55 to 70 U.S. dividend-paying. large-cap stocks selected by a portfolio manager with a strong record of managing U.S. equities while leveraging our world-class research platforms.
• Aims to outperform the benchmark through stock selection rather than sector allocation.
• Rooted in research which shows companies that have consistently grown their dividends have also provided the best opportunity for risk-adjusted returns. And when reinvested, those dividends contributed significantly to total return.