Fund Evaluator:
T. Rowe Price Equity Income (PRFDX)
Follow This Fund
Best Performing in Large Value Over the Last Year
| 39.1% | American Beacon Man Lg Cp Value Inv (BWLIX) |
| 33.9% | PGIM Jennison Focused Value Z (PJGZX) |
| 32.5% | LSV Conservative Value Equity Investor (LVAVX) |
| 31.7% | Fidelity Advisor Blue Chip Value Z (FFVPX) |
| 31.6% | Fidelity Blue Chip Value (FBCVX) |
Fund Details
T. Rowe Price Equity Income Overview
T. Rowe Price Equity Income (PRFDX) is an actively managed U.S. Equity Large Value fund. T. Rowe Price launched the fund in 1985.
The investment seeks a high level of dividend income and long-term capital growth primarily through investments in stocks. The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities with a track record of paying dividends. The fund's managers consider a company to have a track record of paying dividends if the security has paid a dividend within the past 12 months. The adviser generally seeks investments in large-capitalization companies.
About T. Rowe Price Equity Income (PRFDX)
There are 1 members of the management team with an average tenure of 10.67 years: John Linehan (2015). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and Russell 1000 Value TR USD index with a weighting of 100%. T. Rowe Price Equity Income has 125 securities in its portfolio. The top 10 holdings constitute 19.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
T. Rowe Price Equity Income is part of the Equity global asset class and is within the U.S. Equity fund group. T. Rowe Price Equity Income has 9.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 89.0%. There is 9.8% allocated to foreign stock, and 0.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). T. Rowe Price Equity Income has 0.8% of the portfolio in cash.
Assets Under Management
The fund has $7 billion in total assets, which is above the $1 billion average for the Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
PRFDX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The T. Rowe Price Equity Income expense ratio is above average compared to funds in the Large Value category. T. Rowe Price Equity Income has an expense ratio of 0.69%, which is 26% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. T. Rowe Price Equity Income has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 62% for the Large Value category.
Recently, in the month of June 2026, T. Rowe Price Equity Income returned 2.1%, which earned it a grade of B, as the Large Value category had an average return of 1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
T. Rowe Price Equity Income has a trailing yield of 1.33%, which is above the 1.25% category average. The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
T. Rowe Price Equity Income Grades
Year to date, the fund has returned 14.0%, 2.9 percentage points better than the category, which translates into a grade of B. The fund has returned 23.0% over the past year (grade of B), 16.0% over the past three years (grade of C) and 10.5% per year over the past five years (grade of C) and 11.4% per year over the past 10 years (grade of C).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about T. Rowe Price Equity Income, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
PRFDX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PRFDX Return (NAV) | 2.1% | 13.0% | 23.0% | 16.0% | 10.5% | 11.4% |
| PRFDX Grade | B | A | B | C | C | C |
| +/- Category | 0.5% | 3.2% | 2.0% | 0.1% | 0.1% | 0.1% |
| Large Value Avg | 1.6% | 9.8% | 21.0% | 15.9% | 10.4% | 11.3% |
| PRFDX Tax Cost Ratio | na | na | 0.9% | 1.6% | 1.9% | 1.9% |
PRFDX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PRFDX Return (NAV) | 14.0% | 14.6% | 11.9% | 9.6% | -3.3% | 25.7% | 1.3% | 26.6% | -9.3% | 16.2% | 19.3% |
| PRFDX Grade | B | D | D | D | B | C | D | B | D | C | A |
| +/- Category | 2.9% | -0.6% | -2.2% | -2.2% | 2.8% | -0.1% | -2.5% | 1.0% | -0.9% | -0.2% | 4.7% |
| Large Value Avg | 11.1% | 15.2% | 14.1% | 11.8% | -6.1% | 25.8% | 3.8% | 25.6% | -8.5% | 16.4% | 14.5% |
| Risk Measures | |
| Standard Deviation: | 12.3% |
| Total Risk Index: | 1.01 - Average |
| Category Risk Index: | 1.02 - Above Average |
| Category Risk Grade: | D (60% Rank) |
| Beta: | 0.74 |
| R-Squared: | 62% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | na |
| Yield: | 1.3% |
| Dividend Distribution: | Quarterly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $17669 Mil |
| Fund Total Assets: | $7,967 Mil |
| Share Class Type: | Inv |
| Portfolio Turnover: | 18% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 10.7 years | |||
| Average Tenure: 10.7 years | |||
| Managers (Year): Linehan John (2015) | |||
Portfolio Composition (as of 4/30/26)
| # of Holdings: | 125 |
| % in Top 10 Holdings: | 19.9% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 9.8% |
Portfolio Allocation |
|
| Domestic Stock: | 89.0% |
| Foreign Stock: | 9.8% |
| Preferred Stock: | 0.5% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.8% |
Purchase Information
| Fund Family: | T. Rowe Price |
| Phone Number: | 800-638-5660 |
| Website: | www.troweprice.com |
| Status: | Open |
| Inception Date: | October 31, 1985 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $1,000 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.69% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.93% |
| Share Class: | T. Rowe Price Equity Income |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 100 |
