Equity Income Fund

Invests at least 80% in common stocks, with an emphasis on large-capitalization stocks that have a strong track record of paying dividends or that are believed to be undervalued. Broadly diversify sector exposure to minimize volatility.

By investing in common stocks, the fund is subject to declines in stock prices. The value approach carries the risk that the market may not realize a security's value for a long time, or that a stock judged to be undervalued is actually appropriately priced.

Morningstar (Category)

Morningstar
(Overall Rating)1

Large Value
  (1,140 funds)

Data as of 05/31/2021

Data as of 05/31/2021

Fund Manager Tenure2

Net Assets3
(USD)

5yrs
$19.5b

Data as of 05/31/2021

Data as of 05/31/2021

Price
(USD)

Daily Price Change

$35.94
$-0.74

Data as of 06/18/2021

Data as of 06/18/2021

Morningstar Ratings™ are based on risk-adjusted returns. Click on "Overall Rating" for the fund's 3-, 5-, and 10-year (if applicable) Morningstar Ratings™.

John D.  Linehan, CFA
John D. Linehan, CFA, Portfolio Manager

John D. Linehan is the portfolio manager for the U.S. Large Cap Equity Income Strategy, U.S. Select Value Strategy and co-portfolio manager for the US Large-Cap Value Equity Strategy in the U.S. Equity Division. In addition, he is the chief investment officer of Equity and a member of the firm's U.S. Equity Steering and Equity Brokerage and Trading Control Committees. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

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Strategy

Investment Objective

The fund seeks a high level of dividend income and long-term capital growth primarily through investments in stocks.

Morningstar Equity Style

Large Value

Data as of 05/31/2021

The Morningstar Style Box™, a proprietary Morningstar data point, is a 9-square grid that provides a graphical representation of the "investment style" of stocks and mutual funds. See disclaimer at bottom of page for more information.

Morningstar Rating

Period Rating Funds In Category (Large Value)
Overall 1,140
3 Years 1,140
5 Years 1,009
10 Years 736

The Morningstar Rating™ for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.

Yields & Dividends (Investor Class)

30-Day SEC Standardized Yield
with waiver
N/A

Data as of N/A

without waiver
1.70%

Data as of 05/31/2021

30-Day Annualized Dividend Yield
with waiver
N/A
Monthly Dividend
(USD)
N/A
Monthly Dividend
Rate
N/A

Average Annual Total Returns (Investor Class)

1 YR
60.36%
Benchmark
56.09%
Value
4.27% 7.85%

Data as of 03/31/2021

3 YR
10.50%
Benchmark
10.96%
Value
-0.46% -0.14%

Data as of 03/31/2021

5 YR
12.21%
Benchmark
11.74%
Value
0.47% 0.63%

Data as of 03/31/2021

10 YR
10.11%
Benchmark
10.99%
Value
-0.88% -0.75%

Data as of 03/31/2021

Benchmark: Russell 1000 Value Index

Fund Inception: 10/31/1985

Expense Ratio

Gross
0.65%
Net
0.65%

Current performance may be lower or higher than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when you sell your shares. Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

Investors should note that short term returns greater than 40% are highly unusual and unlikely to be sustained.

The gross expense ratio reflects the fund expenses as stated in the fee table of the fund's prospectus prior to the deduction of any waiver or reimbursement. The net expense ratio reflects fund expenses after the deduction of any waiver or reimbursement.  If a fund has an active contractual expense limitation, the expiration date is shown below the gross and net expense ratio values above.  Expense ratios are as of the most recent prospectus.

Current Year Performance (Investor Class)

Daily YTD
15.44%
Benchmark
13.86%
Value
1.58%

Data as of 06/18/2021

Monthly YTD
21.35%
Benchmark
18.41%
Value
2.94%

Data as of 05/31/2021

One Month
2.80%
Benchmark
2.33%
Value
0.47%

Data as of 05/31/2021

Three Months
14.22%
Benchmark
12.69%
Value
1.53%

Data as of 05/31/2021

Benchmark: Russell 1000 Value Index

Fund Inception: 10/31/1985

Asset Allocation

Net Assets
(USD)
$19.5b

Data as of 05/31/2021

Largest US Stock 91.12% $17.8b
Other View complete

Holdings

Total
Holdings
118

Data as of 03/31/2021

Largest Holding Wells Fargo 3.32% Was (12/31/2020) 2.83%
Other View complete Full Holdings
Top 10 Holdings 23.64% View the latest Top 10 Holdings
12-Month Portfolio Turnover 18.2% Data as of 05/31/2021

Largest Contributor

Wells Fargo
3.32%

Largest Detractor

Qualcomm
2.38%

Data as of 03/31/2021

Purchase

Sempra Energy
1.45%
Was 0.80%

Sale

DuPont de Nemours
1.19%
Was 2.48%

Data as of 03/31/2021

Sectors

Total
Sectors
11

Data as of 05/31/2021

Benchmark: Russell 1000 Value Index

Largest Sector Financials 23.40% Was (04/30/2021) 23.14%
Other View complete

Contributor

Financials
By 0.86%
Sector 0.08%
Selection 0.78%

Detractor

Utilities
By -0.15%
Sector -0.18%
Selection 0.04%

Data as of 03/31/2021

Over

Utilities
By 3.44%
Fund 8.25%
Benchmark 4.81%

Under

Communication Services
By -3.87%
Fund 5.02%
Benchmark 8.89%

Data as of 05/31/2021

Team (As of )

John D.  Linehan, CFA

John D. Linehan, CFA
Portfolio Manager

John D. Linehan is the portfolio manager for the U.S. Large Cap Equity Income Strategy, U.S. Select Value Strategy and co-portfolio manager for the US Large-Cap Value Equity Strategy in the U.S. Equity Division. In addition, he is the chief investment officer of Equity and a member of the firm's U.S. Equity Steering and Equity Brokerage and Trading Control Committees. He also is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price Associates, Inc.

  • Fund manager
    since 2015
  • Years at
    T. Rowe Price 23
  • Years investment
    experience 32
Caleb N. Fritz, CFA

Caleb N. Fritz, CFA
Portfolio Specialist

Caleb Fritz is a portfolio specialist in the U.S. Equity Division. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects and supports the large-cap value strategies. Caleb also is a vice president of T. Rowe Price Group, Inc.

  • Years at
    T. Rowe Price 13
  • Years investment
    experience 20

For a complete list of the members of the fund's Investment Advisory Committee, please refer to the fund's prospectus.

How to Invest

View platform information
Share Class Min Initial Investment (USD) Min Subsequent Investment (USD) 12b-1 Fee Expense Ratio
Gross Net Limitation Type Limitation Expiration Date
Investor Class
Cusip 779547108
$2,500 $100 0.00% 0.65% 0.65% N/A N/A
Advisor Class
Cusip 779547207
$2,500 $100 0.25% 0.95% 0.95% N/A
N/A
R Class
Cusip 779547306
$2,500 $100 0.50% 1.25% 1.25% N/A
N/A
I Class
Cusip 779547405
$1,000,000* N/A 0.00% 0.55% 0.55% N/A
N/A

* Minimum initial investment $1,000,000. Minimum is generally waived for intermediaries, certain retirement plans, and certain institutional client accounts.

1

© 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2

Number of years managing the fund.  In the case of co-portfolio management, the longer tenure is displayed.

3

Figure applies to all share classes.

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