Strategy

US Dividend Growth Equity

The US Dividend Growth Equity Composite seeks to provide a growing level of dividend income, long-term capital appreciation and a reasonable level of current income.

3YR Return Annualised (Net)
(View Total Returns)

Tracking Error
(5 Years)

10.19%
3.33%

1YR Return (Net)
(View Total Returns)

Information Ratio
(5 Years)

3.15%
0.13

Inception Date 31-Dec-1995

Performance figures calculated in USD

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Thomas J.  Huber, CFA
Thomas J. Huber, CFA, Portfolio Manager

Tom Huber is the portfolio manager of the US Dividend Growth Equity Strategy in the U.S. Equity Division. He also is the chairman of the Investment Advisory Committee of the US Dividend Growth Equity Strategy and an Investment Advisory Committee member of the US Large-Cap Core Growth Equity and US Real Estate Equity Strategies. Tom is a vice president of T. Rowe Price Group, Inc.

 

Strategy

Investment Approach

  • We seek to provide a growing level of dividend income, long-term capital appreciation, and a reasonable level of current income.
  • The strategy will normally invest 65% of total assets in common stocks of dividend-paying companies that we expect to increase their dividends over time and also provide long-term capital appreciation.
  • The strategy employs a conservative, growth-at-a-discount investment approach with an emphasis on dividend growth. We identify companies with a sustainable competitive advantage that are likely to show consistent growth of earnings and dividends.
  • We particularly favor companies that generate excess cash flow with attractive valuations and solid cash flow to support future dividend increases.

Portfolio Construction

  • Constructed from the bottom up
  • Maintains a broad diversification and managing position sizes to control our risk profile
  • Typically holds 100-125 names in the portfolio
  • Position sizes that range from 0.25% to 5.00%
  • Maintains broad sector diversification and typically holds sector positions that are 0.5x to 2.0x the weight of the S&P 500 Index’s sectors
  • Portfolio turnover ranges from 10%-30%.

Holdings

Total
Holdings
105
Largest Holding Microsoft 5.69% Was (31-Mar-2020) 5.19%
Other View Full Holdings Quarterly data as of 30-Jun-2020
Top 10 Holdings 26.62% View Top 10 Holdings Monthly data as of 30-Jun-2020

Top Purchase

AbbVie
1.27%
Was (31-Mar-2020) 0.70%

Top Sale

U.S. Bancorp (E)
0.00%
Was (31-Mar-2020) 0.64%

Quarterly Data as of 30-Jun-2020

Sectors

Total
Sectors
11
Largest Sector Information Technology 21.45% Was (31-Mar-2020) 18.74%
Other View complete Sector Diversification

Monthly Data as of 30-Jun-2020

Benchmark: S&P 500 Index

Largest Overweight

Industrials & Business Services
By3.45%
Portfolio 11.44%
Benchmark 7.99%

Largest Underweight

Communication Services
By-7.66%
Portfolio 3.12%
Benchmark 10.78%

Monthly Data as of 30-Jun-2020

Team (As of 01-Oct-2020)

Thomas J.  Huber, CFA

Tom Huber is the portfolio manager of the US Dividend Growth Equity Strategy in the U.S. Equity Division. He also is the chairman of the Investment Advisory Committee of the US Dividend Growth Equity Strategy and an Investment Advisory Committee member of the US Large-Cap Core Growth Equity and US Real Estate Equity Strategies. Tom is a vice president of T. Rowe Price Group, Inc. 

Tom’s investment experience began in 1993, and he has been with T. Rowe Price since 1994, beginning in the U.S. Equity Division. Before assuming his current role, he was an equity analyst specializing in leisure, food and drug retail, and specialty retail. Prior to T. Rowe Price, Tom was employed by Robert W. Baird as an assistant vice president managing initial public offering and merger and acquisition activity. Tom also was employed by NationsBank Corporation (now Bank of America) as a credit analyst and corporate banking relationship manager.

Tom earned a B.S. in finance from the University of Virginia and an M.S. in finance from the University of Wisconsin-Madison, School of Business, within the applied security analysis and portfolio management program. He also has earned the Chartered Financial Analyst® designation. 

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

  • Portfolio manager
    since
    2000
  • Years at
    T. Rowe Price
    26
  • Years investment
    experience
    27
William D. Nolan

William D. Nolan is a portfolio specialist in the U.S. Equity Division of T. Rowe Price. He acts as a proxy for equity portfolio managers with institutional clients, consultants, and prospects. Mr. Nolan supports T. Rowe Price's large-cap value strategies, focusing on the US Large-Cap Equity Income and US Value Equity Strategies. He is a vice president of T. Rowe Price Associates, Inc.

Mr. Nolan has 26 years of investment experience. Before joining the firm, he was most recently a managing director of institutional equity sales for Wachovia Corporation where he also served as director of institutional research marketing. Prior to this, Mr. Nolan was director of equity institutional sales for Alex Brown and was the Washington, D.C., branch manager in the National Accounts Division of IBM.

Mr. Nolan earned a B.S. in social and behavioral sciences from Johns Hopkins University.

  • Years at
    T. Rowe Price
    11
  • Years investment
    experience
    29

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GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®). TRP has been independently verified for the twenty one- year period ended June 30, 2017 by KPMG LLP. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

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