Brian Rogers Buys 3 New Stocks for T. Rowe Price Equity Income Fund in Q3

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Oct 19, 2014
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Brian Rogers (Trades, Portfolio), who manages the T Rowe Price Equity Income Fund, purchased three new stocks for the fund in the third quarter. He has a cautious outlook on markets and believes they may begin to "moderate" in the near future, saying in his third quarter letter:

"We maintain our cautious outlook as the equity market continued its upward path during the year. The equity market runup since 2011 has come on the back of accommodative Fed policy, historically high profit margins, and general multiple expansions. Current equity market valuations are roughly in line with their long-term averages, so we expect a closer focus on company fundamentals going forward. Wage growth and single-family housing starts remain tepid, suggesting weak aggregate demand. We believe that equity returns will continue to moderate in the coming months, as prices have risen to the point where values are more difficult to find. In addition, there are a number of unpredictable areas of geopolitical tension that could rattle investor confidence at some point, and we prefer to err on the side of caution after an extended period of strong stock performance."

The fund contains 114 stocks in total and has a value of $26.9 billion. The three new positions he added during the quarter were: MetLife Inc. (MET, Financial), News Corp (NWS) and Procter & Gamble (PG, Financial).

MetLife Inc. (MET, Financial)

Rogers purchased 3.25 million shares of his largest new position, MetLife Inc., in the third quarter, for 0.65% of his portfolio. The stock's average price for the quarter was $55.

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MetLife Inc. a Delaware corporation incorporated in 1999 along with its subsidiaries, including Metropolitan Life Insurance Company. Metlife Inc. has a market cap of $54.95 billion; its shares were traded at around $48.86 with a P/E ratio of 12.50 and P/S ratio of 0.79. The dividend yield of Metlife Inc. stocks is 2.56%.MetLife Inc. a Delaware corporation incorporated in 1999 along with its subsidiaries, including Metropolitan Life Insurance Company. Metlife Inc. has a market cap of $54.95 billion; its shares were traded at around $48.86 with a P/E ratio of 12.50 and P/S ratio of 0.79. The dividend yield of Metlife Inc. stocks is 2.56%.

News Corp (NWS)

Rogers bought 2.6 million News Corp shares for 0.16% of the portfolio. The stock's price for the third quarter averaged $17.

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News Corporation is a diversified media and information services company focused on creating and distributing authoritative and engaging content to consumers. News Corp has a market cap of $8.26 billion; its shares were traded at around $14.26 with a P/E ratio of 35.70 and P/S ratio of 0.99.

Procter & Gamble (PG, Financial)

Rogers purchased 500,000 shares of Procter & Gamble for 0.16% of the portfolio. The stock's price for the third quarter averaged $82.

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Procter & Gamble Co., an Ohio corporation was incorporated in 1905. Procter & Gamble Co. has a market cap of $225.47 billion; its shares were traded at around $83.27 with a P/E ratio of 21.20 and P/S ratio of 2.91. The dividend yield of Procter & Gamble Co stocks is 2.99%. Procter & Gamble Co. had an annual average earnings growth of 2.70% over the past 10 years. GuruFocus rated Procter & Gamble Co. the business predictability rank of 1-star.

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