Insightful Analysis of the Fund's Latest N-PORT Filing for Q4 2023
With a legacy dating back to 1985, the T. Rowe Price Equity Income Fund is a testament to prudent, value-driven investment strategies. Under the stewardship of John Linehan since November 2015, the fund has consistently pursued high dividend income and long-term capital growth. The fund's philosophy is deeply rooted in investing primarily in undervalued large-cap stocks with a strong dividend history, allocating at least 80% of its net assets to such equities.
Summary of New Buys
The T. Rowe Price Equity Income Fund has expanded its portfolio with 4 new stock additions in the fourth quarter of 2023. Noteworthy new positions include:
- ConocoPhillips (COP, Financial), purchasing 355,000 shares, which translates to 0.24% of the portfolio and a total value of $41.2 million.
- Honeywell International Inc (HON, Financial), acquiring 120,000 shares, making up about 0.15% of the portfolio, valued at $25.2 million.
- Intel Corp (INTC, Financial), with a new stake of 365,000 shares, representing 0.11% of the portfolio, amounting to $18.3 million.
Key Position Increases
The fund has also bolstered its positions in 37 stocks, with significant increases in:
- Zimmer Biomet Holdings Inc (ZBH, Financial), adding 345,000 shares for a total of 1,900,000 shares, marking a 22.19% increase in share count and a 0.25% portfolio impact, valued at $231.2 million.
- Charles Schwab Corp (SCHW, Financial), with an additional 480,000 shares, bringing the total to 3,980,000 shares, a 13.71% increase in share count, with a total value of $273.8 million.
Summary of Sold Out Positions
The fourth quarter also saw the fund exiting positions in 4 holdings, including:
- PNC Financial Services Group Inc (PNC, Financial), where the fund sold all 155,000 shares, impacting the portfolio by -0.12%.
- RPM International Inc (RPM, Financial), liquidating all 190,000 shares, with a -0.11% portfolio impact.
Key Position Reductions
Concurrently, T. Rowe Price Equity Income Fund reduced its stake in 65 stocks. The most significant reductions were:
- Southern Co (SO, Financial), cutting back by 700,000 shares, leading to a -9.94% decrease in shares and a -0.29% portfolio impact. The stock's average trading price was $68.67 during the quarter, with a 6.27% return over the past 3 months and a -1.83% year-to-date performance.
- AbbVie Inc (ABBV, Financial), with a reduction of 295,000 shares, resulting in a -28.37% decrease in shares and a -0.28% portfolio impact. The stock's average price was $145.79 during the quarter, yielding a 16.02% return over the past 3 months and an 8.36% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, the T. Rowe Price Equity Income Fund's portfolio comprised 115 stocks. The top holdings included 3.01% in Wells Fargo & Co (WFC, Financial), 2.9% in Qualcomm Inc (QCOM, Financial), 2.63% in Southern Co (SO), 2.56% in American International Group Inc (AIG, Financial), and 2.48% in TotalEnergies SE (XPAR:TTE, Financial). The fund's investments are predominantly distributed across all 11 industries, with a focus on Financial Services, Healthcare, Industrials, Technology, Energy, Consumer Defensive, Utilities, Consumer Cyclical, Communication Services, Real Estate, and Basic Materials.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
