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Form N-CSR T. Rowe Price Dividend For: Dec 31

February 22, 2024 10:25 AM EST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-07055

T. Rowe Price Dividend Growth Fund, Inc.

 

(Exact name of registrant as specified in charter)

100 East Pratt Street, Baltimore, MD 21202

 

(Address of principal executive offices)

David Oestreicher

100 East Pratt Street, Baltimore, MD 21202

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: December 31, 2023


Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1


Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
December
31,
2023
Annual
Report
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRDGX
Dividend
Growth
Fund
.
TADGX
Dividend
Growth
Fund–
.
Advisor  Class
PDGIX
Dividend
Growth
Fund–
.
I  Class
TRZDX
Dividend
Growth
Fund–
.
Z Class
T.
ROWE
PRICE
Dividend
Growth
Fund
HIGHLIGHTS
Despite
posting
significant
positive
absolute
returns,
the
Dividend
Growth
Fund
underperformed
the
benchmark
S&P
500
Index
and
its
peer
group,
the
Lipper
Large-Cap
Core
Funds
Index,
for
the
12-month
period
ended
December
31,
2023.
Underperformance
was
concentrated
in
three
sectors
that
led
benchmark
returns—information
technology,
consumer
discretionary,
and
communication
services.
Our
dividend
growth
mandate
prevents
us
from
owning
many
high-
performing
names
in
those
sectors,
providing
significant
headwinds
to
relative
performance.
Against
the
style-specific
Nasdaq
US
Dividend
Achievers
Index,
however,
we
outperformed
for
the
year
due
to
stock
selection,
demonstrating
the
strength
of
our
bottom-up
process
within
our
investable
universe.
We
continue
to
seek
compelling
risk/reward
opportunities,
with
the
information
technology
sector
our
largest
on
an
absolute
basis,
followed
by
health
care
and
industrials
and
business
services.
Our
preference
is
for
high-quality
companies
with
durable
growth
traits.
We
continue
to
build
positions
in
companies
with
compelling
risk/reward
profiles
and
strong
dividend
growth
prospects
on
a
multiyear
view.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
Dividend
Growth
Fund
Market
Commentary
1
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
2023
as
most
economies
managed
to
avoid
the
recession
that
was
widely
predicted
at
the
start
of
the
year.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
rebounded
late
in
the
year
amid
falling
interest
rates.
For
the
12-month
period,
the
technology-oriented
Nasdaq
Composite
Index
rose
about
43%,
reaching
a
record
high
and
producing
the
strongest
result
of
the
major
benchmarks.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
which
finished
the
year
just
short
of
the
record
level
it
reached
in
early
2022,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
A
small
group
of
tech-oriented
mega-cap
companies
helped
drive
much
of
the
market’s
advance.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns
in
the
growth-focused
environment,
and
the
energy
sector
also
lost
ground
amid
declining
oil
prices.
The
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
and
was
one
of
the
top-performing
segments
in
the
second
half
of
the
year.
The
U.S.
economy
was
the
strongest
among
the
major
markets
during
the
period,
with
gross
domestic
product
growth
coming
in
at
4.9%
in
the
third
quarter,
the
highest
since
the
end
of
2021.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
and
second
quarters
of
2023,
but
results
were
better
than
expected,
and
earnings
growth
turned
positive
again
in
the
third
quarter.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation
remained
a
concern,
but
investors
were
encouraged
by
the
slowing
pace
of
price
increases
as
well
as
the
possibility
that
the
Federal
Reserve
was
nearing
the
end
of
its
rate-hiking
cycle.
The
Fed
held
rates
steady
after
raising
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
and
at
its
final
meeting
of
the
year
in
December,
the
central
bank
indicated
that
there
could
be
three
25-basis-point
rate
cuts
in
2024.
T.
ROWE
PRICE
Dividend
Growth
Fund
2
The
yield
of
the
benchmark
10-year
U.S.
Treasury
note
briefly
reached
5.00%
in
October
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
period-end,
the
same
level
where
it
started
the
year,
amid
cooler-than-expected
inflation
readings
and
less-hawkish
Fed
rhetoric.
Fixed
income
benchmarks
were
lifted
late
in
the
year
by
falling
yields.
Investment-grade
and
high
yield
corporate
bonds
produced
solid
returns,
supported
by
the
higher
coupons
that
have
become
available
over
the
past
year,
as
well
as
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely, 
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Dividend
Growth
Fund
Management’s
Discussion
of
Fund
Performance
3
INVESTMENT
OBJECTIVE 
The
fund
seeks
dividend
income
and
long-term
capital
growth
primarily
through
investments
in
stocks.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past
12
months?
The
Dividend
Growth
Fund
returned
13.65%
(net
of
fees)
for
the
12-month
period
ended
December
31,
2023.
The
fund
underperformed
its
primary
benchmark,
the
S&P
500
Index,
and
its
peer
group,
the
Lipper
Large-Cap
Core
Funds
Index.
The
fund
also
underperformed
its
peer
group
in
the
Morningstar
Large
Blend
category.
(Returns
for
the
Advisor,
I,
and
Z
Class
shares
varied
slightly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results
.)
The
fund’s
Board
of
Directors
declared
an
annual
dividend
of
$0.2408
per
share
(distributions
may
vary
for
the
fund’s
Advisor,
I,
and
Z
Class
shares)
on
December
12,
2023.
Dividend
distributions
for
the
year
to
date
totaled
$0.7308
per
share.
Shareholders
should
have
already
received
a
check
or
statement
reflecting
these
distributions.
What
factors
influenced
the
fund’s
performance?
U.S.
equities
climbed
in
2023,
as
measured
by
the
S&P
500
Index,
which
climbed
26.29%.
Our
style-specific
benchmark,
the
Nasdaq
US
Broad
Dividend
Achievers
Index,
advanced
by
11.88%,
demonstrating
the
challenging
relative
environment
for
dividend
growers.
Early
in
the
period,
enthusiasm
over
the
proliferation
of
generative
artificial
intelligence
(AI)
pushed
mega-cap,
tech-
levered
names
higher
in
a
narrow
market.
Later
in
the
year,
favorable
economic
data
signaled
to
investors
that
restrictive
monetary
policy
may
stabilize
or
ease,
pushing
equities
higher
as
the
year
closed.
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
12/31/23
6
Months
12
Months
Dividend
Growth
Fund
.
6.38‌%
13.65‌%
Dividend
Growth
Fund–
.
Advisor  Class
6.23‌
13.35‌
Dividend
Growth
Fund–
.
I  Class
6.45‌
13.79‌
Dividend
Growth
Fund–
.
Z  Class
6.72‌
14.38‌
S&P
500
Index
8.04‌
26.29‌
Lipper
Large-Cap
Core
Funds
Index
8.67‌
24.65‌
T.
ROWE
PRICE
Dividend
Growth
Fund
4
While
the
portfolio
participated
with
strong
absolute
returns,
extremely
narrow
market
leadership
was
a
headwind
for
relative
performance
against
the
broad
market
benchmark
as
high-beta,
growth-oriented
companies
led
the
way,
particularly
non-dividend-paying
big
tech
companies,
most
of
which
we
do
not
own
given
our
dividend
growth
mandate.
Against
the
style-specific
benchmark,
however,
the
portfolio
outperformed
largely
due
to
favorable
stock
selection.
Our
focus
remains
on
buying
and
holding
high-quality
companies
that
have
strong
balance
sheets,
durable
cash
flow
generation,
and
increasing
dividends,
and
we
remain
confident
that
our
strategy
has
the
potential
to
generate
strong
risk-adjusted
returns.
An
underweight
allocation
in
information
technology
detracted,
as
did
stock
choices
in
the
sector.
A
large
portion
of
sector
performance
within
the
broad
market
benchmark
was
concentrated
in
select
names
that
either
pay
no
dividend
or
pay
a
nominal
one
that
does
not
fit
our
investment
criteria
for
dividend
commitment,
creating
an
outsized
impact
on
portfolio
performance.
Not
owning
NVIDIA,
one
of
the
largest
beneficiaries
of
AI
enthusiasm,
detracted.
Our
position
in
Texas
Instruments,
the
market
leader
in
analog
and
mixed-signal
semiconductors,
detracted
as
shares
advanced
but
did
not
keep
pace
with
the
broader
sector.
We
view
it
as
one
of
the
highest-
quality
companies
in
its
space,
with
an
attractive
track
record
of
long-term
capital
management.
We
believe
the
compounding
effects
of
its
competitive
advantages
have
the
potential
to
drive
free
cash
flow
growth
over
the
long
term.
Stock
selection
added
value
against
the
style-specific
benchmark,
however,
demonstrating
the
quality
of
our
holdings
in
our
investable
universe.
(Please
refer
to
the
portfolio
of
investments
for
a
complete
list
of
holdings
and
the
amount
each
represents
in
the
portfolio.)
In
the
consumer
discretionary
sector,
unfavorable
stock
selection
weighed
on
returns.
A
pair
of
non-dividend-paying
companies
that
do
not
meet
our
investment
criteria—Tesla
and
Amazon.com—led
returns
in
the
sector.
Our
position
in
Ross
Stores,
which
provides
a
compelling
mix
of
name
brand
and
designer
apparel
and
home
fashion
at
price
points
that
resonate
strongly
with
value-conscious
consumers,
detracted
from
relative
returns.
Shares
advanced
as
low-end
consumer
spending
trends
normalized,
but
performance
lagged
sector
peers.
We
like
the
company
for
its
position
in
the
attractive
off-price
retail
segment,
as
well
as
its
strong
balance
sheet.
Against
our
style-specific
benchmark,
stock
selection
boosted
relative
returns,
further
demonstrating
the
strength
of
our
bottom-up
process
within
our
investable
universe.
Our
underweight
position
in
the
communication
services
sector
also
pulled
down
relative
returns.
Many
companies
within
the
sector
do
not
pay
a
dividend
or
meet
our
investment
criteria,
and
one
of
them—Meta
Platforms,
parent
company
of
Facebook—led
sector
returns.
T.
ROWE
PRICE
Dividend
Growth
Fund
5
Conversely,
stock
choices
within
industrials
and
business
services
added
value.
Our
position
in
General
Electric
boosted
relative
returns
as
the
spinoff
of
GE’s
health
care
segment
cleaned
up
the
existing
company’s
balance
sheet,
improved
performance
in
its
energy
segment,
and
provided
visibility
to
the
promise
of
its
aerospace
division.
We
believe
the
upside
potential
of
the
aerospace
division
as
well
as
the
self-help
potential
in
its
power
business
could
launch
an
attractive
multiyear
growth
trajectory,
while
the
improved
post-spinoff
balance
sheet
could
help
the
company
deliver
more
value
to
shareholders
as
performance
improves.
The
sector
also
led
relative
returns
against
the
style-specific
benchmark.
An
average
underweight
to
the
energy
sector
also
boosted
relative
returns
during
the
period
as
the
sector
ended
lower
given
falling
oil
and
natural
gas
prices.
Over
the
course
of
the
year,
we
shifted
our
underweight
to
a
modest
overweight
given
a
shift
in
our
structural
long-term
energy
view
and
improving
capital
allocation
practices
within
the
sector.
We
continue
to
seek
companies
in
the
space
with
strong
balance
sheets
and
favorable
capital
allocation
structures.
How
is
the
fund
positioned?
As
shown
in
the
Sector
Diversification
table,
the
fund’s
largest
allocations
at
the
end
of
the
period
were
in
information
technology,
health
care,
industrials
and
business
services,
and
financials.
These
are
sectors
where
we
believe
we
can
find
high-quality
companies
with
sustainable
competitive
advantages,
durable
business
models,
attractive
valuations,
and
potential
for
strong
dividend
growth.
Our
largest
purchasing
activity
during
the
year
came
within
information
technology,
where
we
added
exposure
to
AI
capabilities
through
names
that
fit
our
dividend
growth
criteria.
We
made
significant
additions
within
the
semiconductor
industry,
including
a
recent
initiation
in
Analog
Devices,
a
high-quality
analog
consolidator.
We
view
it
as
one
of
the
best
companies
in
its
space,
with
a
high-value
product
portfolio
with
attractive
end
markets
and
underappreciated
free
cash
flow
potential.
Elsewhere
in
the
industry,
we
added
shares
of
Applied
Materials,
Microchip
Technology,
and
KLA
Corp.
In
our
view,
these
companies
have
the
potential
for
durable
growth
due
to
their
product
lines
and
also
boast
attractive
shareholder
return
profiles.
We
also
added
to
a
pair
of
top
portfolio
holdings
within
the
sector
in
Microsoft
and
Apple.
We
made
several
initiations
in
the
energy
sector
to
add
exposure
to
a
space
we
feel
is
undergoing
structural
productivity
changes.
We
initiated
a
position
in
Schlumberger,
the
global
leader
in
oil
field
services.
Schlumberger
is
a
technological
leader
in
its
field
with
attractive
scale
and
a
strong
reputation
for
performance,
and
we
believe
the
company
has
the
potential
to
be
a
beneficiary
T.
ROWE
PRICE
Dividend
Growth
Fund
6
of
the
ongoing
international
capital
expenditure
exploration
cycle,
which
could
continue
for
several
years,
particularly
internationally,
where
the
company
makes
most
of
its
revenue.
We
also
added
a
position
in
EQT,
the
largest
producer
of
natural
gas
in
the
U.S.,
as
a
high-quality
way
to
increase
exposure
to
the
commodity
where
we
feel
fundamentals
have
improved.
Elsewhere
in
the
portfolio,
we
found
pockets
of
opportunities
to
increase
our
positions
in
select
areas,
adding
to
durable,
high-quality
companies
with
compelling
risk/reward
profiles
and
strong
multiyear
dividend
growth
prospects.
In
many
cases,
these
companies
have
already
experienced
their
periods
of
weakness,
which
are
priced
into
valuation
and
thus
create
meaningful
upside
for
the
portfolio
as
fundamentals
improve.
We
added
positions
in
McKesson,
the
largest
North
American
drug
distributor
and
a
distributor
of
ambulatory
medical/surgical
supplies
with
a
focus
on
the
oncology
ecosystem
and
biopharma
manufacturer
services,
as
well
as
Target,
an
above-average
retailer
that
offers
compelling
value
to
its
customers
backed
by
its
strong
merchandising
and
omnichannel
operations.
Several
other
recent
positions
fit
into
this
theme.
In
the
second
half
of
the
year,
we
initiated
positions
in
T-Mobile
US,
the
large
U.S.
wireless
carrier
with
the
best
management
team
and
shareholder
alignment
in
its
industry,
and
CSX,
a
railroad
that
executes
well
in
a
strong
industry
backdrop
with
attractive
dividend
growth
potential.
We
also
added
to
our
existing
position
in
Colgate-Palmolive,
the
world’s
leading
oral
care
products
provider,
as
it
utilizes
pricing
power
and
volume
improvements
to
potentially
unlock
shareholder
value.
SECTOR
DIVERSIFICATION
Percent
of
Net
Assets
6/30/23
12/31/23
Information
Technology  
18.7‌%
19.6‌%
Health
Care  
17.1‌
16.4‌
Industrials
and
Business
Services  
15.0‌
15.7‌
Financials  
15.1‌
15.5‌
Consumer
Staples  
10.0‌
8.9‌
Consumer
Discretionary  
6.9‌
7.2‌
Energy  
3.3‌
4.2‌
Materials  
4.2‌
3.9‌
Real
Estate  
2.6‌
2.5‌
Utilities  
3.0‌
2.4‌
Communication
Services  
0.5‌
0.6‌
Other
and
Reserves  
3.6‌
3.1‌
Total
100.0‌%
100.0‌%
Historical
weightings
reflect
current
industry/sector
classifications.
T.
ROWE
PRICE
Dividend
Growth
Fund
7
Our
largest
net
sales
came
in
the
financials
sector.
We
eliminated
our
positions
in
CME
Group,
a
diversified
futures
exchange,
and
Fidelity
National
Information
Services,
a
global
payment
processor,
when
risk/reward
and
growth
prospects
turned
unfavorable.
We
used
proceeds
from
the
sales
to
fund
more
attractive
ideas
elsewhere
in
the
portfolio.
What
is
portfolio
management’s
outlook?
As
we
begin
2024,
market
sentiment
is
the
exact
opposite
of
2023,
when
everyone
was
bearish
and
the
market
surged.
Following
a
strong,
valuation-
driven
market
in
2023,
and
with
bullish
sentiment
and
expectations
for
a
soft
landing
prevalent,
the
risk
could
be
to
the
downside
should
a
less-than-perfect
scenario
unfold.
A
combination
of
slower
expected
earnings
growth
and
higher
long-term
interest
rates
is
not
consistent
with
multiple
expansion
or
the
continued
outperformance
of
long
duration
stocks.
It
is
challenging
to
see
a
scenario
in
which
we
get
a
repeat
of
the
S&P
500’s
stellar
return,
driven
by
just
a
handful
of
names
and
multiple
expansion.
Our
expectation
is
for
more
muted
market
returns
going
forward
but
with
broader
market
participation.
This
is
a
time
to
be
selective,
with
our
expectation
being
for
an
environment
that
once
again
rewards
fundamentals.
We
believe
this
should
provide
a
more
positive
backdrop
for
dividend
growth
as
a
category
moving
forward.
As
always,
our
focus
remains
on
buying
and
holding
high-quality
companies
that
have
strong
balance
sheets,
durable
cash
flow
generation,
and
increasing
dividends
that
have
proven
to
compound
value
over
time.
While
there
will
be
periods
of
time
when
dividend
growers
outperform
and
others
when
they
underperform,
over
time,
they
have
outperformed
and,
importantly,
done
so
with
lower
volatility.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Dividend
Growth
Fund
8
RISKS
OF
STOCK
INVESTING
A
fund’s
share
price
can
fall
because
of
weakness
in
the
stock
or
bond
markets,
a
particular
industry,
or
specific
holdings.
Stock
markets
can
decline
for
many
reasons,
including
adverse
political
or
economic
developments,
changes
in
investor
psychology,
or
heavy
institutional
selling.
The
prospects
for
an
industry
or
company
may
deteriorate
because
of
a
variety
of
factors,
including
disappointing
earnings
or
changes
in
the
competitive
environment.
In
addition,
the
investment
manager’s
assessment
of
companies
held
in
a
fund
may
prove
incorrect,
resulting
in
losses
or
poor
performance
even
in
rising
markets.
Funds
investing
in
stocks
with
a
dividend
orientation
may
have
somewhat
lower
potential
for
price
appreciation
than
those
concentrating
on
rapidly
growing
firms.
Also,
a
company
may
reduce
or
eliminate
its
dividend.
BENCHMARK
INFORMATION
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
Note:
The
Nasdaq
Broad
Dividend
Achievers
Index
is
composed
of
U.S.
accepted
securities
with
at
least
10
consecutive
years
of
increasing
annual
regular
dividend
payments.
Note:
The
S&P
500
Index
is
a
product
of
S&P
Dow
Jones
Indices
LLC,
a
division
of
S&P
Global,
or
its
affiliates
(“SPDJI”)
and
has
been
licensed
for
use
by
T.
Rowe
Price.
Standard
&  Poor’s
®
and
S&P
®
 are
registered
trademarks of
Standard
&
Poor’s
Financial
Services
LLC,
a
division
of
S&P
Global (“S&P”);
Dow
Jones
®
is
a
registered
trademark
of
Dow
Jones
Trademark
Holdings
LLC
(“Dow
Jones”);
T.
Rowe
Price
is
not
sponsored,
endorsed,
sold
or
promoted
by
SPDJI,
Dow
Jones,
S&P,
or
their
respective
affiliates,
and
none
of
such
parties
make
any
representation
regarding
the
advisability
of
investing
in
such
product(s)
nor
do
they
have
any
liability
for
any
errors,
omissions,
or
interruptions
of
the
S&P
500
Index.
T.
ROWE
PRICE
Dividend
Growth
Fund
9
PORTFOLIO
HIGHLIGHTS
TWENTY-FIVE
LARGEST
HOLDINGS
Percent
of
Net
Assets
12/31/23
Microsoft
6.5‌%
Apple
4.5‌ 
Visa
2.2‌ 
UnitedHealth
Group
2.1‌ 
Accenture
1.9‌ 
JPMorgan
Chase
1.9‌
Chubb
1.9‌
General
Electric
1.8‌
Marsh
&
McLennan
1.7‌
Thermo
Fisher
Scientific
1.6‌
Roper
Technologies
1.6‌
Eli
Lilly
1.5‌
McKesson
1.5‌
Honeywell
International
1.4‌
Mondelez
International
1.4‌
Ross
Stores
1.3‌
Home
Depot
1.3‌
Linde
1.3‌
KLA
1.2‌
Hilton
Worldwide
Holdings
1.2‌
Exxon
Mobil
1.2‌
Broadridge
Financial
Solutions
1.2‌
Amphenol
1.2‌
Bank
of
America
1.1‌
Danaher
1.1‌
Total
45.6‌%
Note:
The
information
shown
does
not
reflect
any
exchange-traded
funds
(ETFs),
cash
reserves,
or
collateral
for
securities
lending
that
may
be
held
in
the
portfolio.
T.
ROWE
PRICE
Dividend
Growth
Fund
10
GROWTH
OF
$10,000 
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from
fund returns
as
well
as
mutual fund
averages
and
indexes.
DIVIDEND
GROWTH
FUND 
Note:
Performance
for
the Advisor,
I,
and
Z
Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table
on
the
next
page. 
T.
ROWE
PRICE
Dividend
Growth
Fund
11
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
Periods
Ended
12/31/23
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Dividend
Growth
Fund
.
13.65‌%
13.93‌%
11.27‌%
–‌
Dividend
Growth
Fund–
.
Advisor  Class
13.35‌
13.63‌
10.97‌
–‌
Dividend
Growth
Fund–
.
I  Class
13.79‌
14.07‌
–‌
12.42‌%
12/17/15
Dividend
Growth
Fund–
.
Z  Class
14.38‌
–‌
–‌
9.37‌
2/22/21
The
fund’s
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Share
price,
principal
value,
and
return
will
vary,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1
-
800
-
225
-
5132
or,
for
0.02
Advisor,
03
I
,
and
0.04
Z
Class
shares,
1-800-638-8790.
This
table
shows
how
the
fund
would
have
performed
each
year
if
its
actual
(or
cumulative)
returns
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
T.
ROWE
PRICE
Dividend
Growth
Fund
12
EXPENSE
RATIO
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
fund
has
four
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
Advisor
Class
shares
are
offered
only
through
unaffiliated
brokers
and
other
financial
intermediaries
and
charge
a
0.25%
12b-1
fee,
I
Class
shares
are
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment,
and
Z
Class
shares
are
offered
only
to
funds
advised
by
T.
Rowe
Price
and
other
advisory
clients
of
T.
Rowe
Price
or
its
affiliates
that
are
subject
to
a
contractual
fee
for
investment
management
services
and
impose
no
12b-1
fee
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
expenses
based
on
the
fund’s
actual
returns.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period. 
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is