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How This Dividend Fund Protects the Downside

A tilt away from energy and tech helps propel Silver-rated T. Rowe Price Dividend Growth's superior performance during market turbulence.

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Robby Greengold: T. Rowe Price Dividend Growth is an excellent option for income-focused investors comfortable with modest upside potential relative to the broad equity market but who are looking for outstanding downside protection.

This is a Silver-rated fund with several positive attributes. Portfolio manager Tom Huber has been at the helm a long time--nearly 20 years now--and during that time he's consistently followed a patient, low-turnover approach that focuses mostly on dividend-paying firms that are financially healthy enough to sustain or grow their payouts. He looks for companies with durable competitive advantages, ample cash flow, and management teams that allocate capital with shareholders' interests in mind, whether that's through dividends or buybacks.

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Robby Greengold does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.