MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC, N-30D, 1999-04-27

MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC
N-30D, 1999-04-27

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<PAGE>

MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH TWO WORLD TRADE CENTER NEW
SECURITIES INC. YORK, NEW YORK 10048
LETTER TO THE SHAREHOLDERS FEBRUARY 28, 1999

DEAR SHAREHOLDER:

The twelve-month period ending February 28, 1999, proved to be very volatile in
the markets, both domestically and abroad. After a peak in the market in the
middle of July, the markets sold off on fears of problems in several foreign
economies and their potential impact on the United States. As the summer came to
a close and the Fed lowered interest rates 75 basis points in the fall,
investors regained their confidence and the markets rebounded, closing the
calendar year with above-20-percent returns for the fourth year in a row. While
interest rates continued their decline, inflation remained in check and the
markets continued to hit new highs.

PERFORMANCE

Against this backdrop, Morgan Stanley Dean Witter Dividend Growth Securities'
Class B shares posted a total return of 7.59 percent for the twelve-month period
ended February 28, 1999, versus 5.30 percent for the Lipper Growth and Income
Funds Index and 19.74 percent for the Standard & Poor's 500 Composite Stock
Price Index (S&P 500). For the same period the Fund's Class A, C and D shares
earned 8.10 percent, 7.26 percent and 8.33 percent, respectively. The
performance of the Fund's four share classes varies because of differing
expenses. The accompanying chart compares the performance of the Fund's Class B
shares versus the Lipper and S&P 500 indexes.

The Fund's underperformance of the S&P 500 Index during this period was largely
due to the Fund's relatively low exposure to the technology and financial
sectors, both of which have rallied significantly in recent months. Technology
stocks generally pay little if any dividends and therefore are not included in
the Fund, because one of the Fund's primary investment objectives is to provide
reasonable current income. And while the Fund does hold some financial stocks,
this sector is underweighted relative to the S&P 500.

<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
LETTER TO THE SHAREHOLDERS FEBRUARY 28, 1999, CONTINUED

Additionally, the Fund's investment process is very value oriented. During the
fiscal year there was a significant difference between the performance of growth
stocks and value stocks. In fact, near the end of the fiscal period, one
well-respected Wall Street strategist observed that S&P 500 value stocks were
underperforming S&P 500 growth stocks by the widest margin in 25 years.

PORTFOLIO STRUCTURE

Several portfolio shifts occurred during the fiscal year. We sold our holdings
in Beneficial Corp., Sprint and PG&E and eliminated the Fund's exposure to
long-term U.S. Treasury bonds by selling them during various periods of
significant bond strength. We added positions in Armstrong World Industries,
Associates First Capital, Conagra, Delphi Automotive, Dominion Resources, Fluor
Corp., B. F. Goodrich, Hercules Inc., Kimberly-Clark, Rubbermaid, Ryder, Sysco
Corp. and Winn-Dixie Stores. In addition, the merger of Amoco and British
Petroleum was completed during the period under review, resulting in a position
in BP Amoco rather than the Fund's original position in Amoco.

LOOKING AHEAD

We are convinced that the continued use of our stringent screening process that
seeks out high-quality overlooked stocks, as well as monitoring the progress of
current investments, will play a key role in the Fund's long-term success. The
Fund's strength can be attributed in part to its strategy of investing in
dividend-paying common stocks. Stocks that pay dividends offer the potential for
growth of both investment capital and dividend income, the two components of
total return. Historically, investors have been willing to pay for that dividend
flow, making dividend-paying stocks particularly attractive during periods of
market weakness. By investing in these stocks the Fund offers investors an
opportunity to enjoy upside potential during strong markets and lends some
downside support during weak ones, a strategy that has served long-term
investors well.

We appreciate your ongoing support of Morgan Stanley Dean Witter Dividend Growth
Securities and look forward to continuing to serve your investment needs and
objectives.

Very truly yours,

/s/ Charles A. Fiumefreddo
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD

2
<PAGE>

MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH
SECURITIES INC.
FUND PERFORMANCE FEBRUARY 28, 1999

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
Growth of $10,000 -- Class B
Shares
($ in Thousands)

Fund S&P 500(4) Lipper(5)
<S> <C> <C> <C>
February-1989 $10,000 $10,000 $10,000
February-1990 $11,785 $11,884 $11,307
February-1991 $12,788 $13,627 $12,448
February-1992 $15,195 $15,810 $14,440
February-1993 $16,583 $17,494 $16,034
February-1994 $18,238 $18,947 $17,977
February-1995 $18,831 $20,341 $18,712
February-1996 $24,482 $27,391 $24,317
February-1997 $29,713 $34,557 $29,607
February-1998 $38,358 $46,648 $37,965
February-1999 $41,271(3) $55,856 $39,977
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. PERFORMANCE FOR CLASS
A, CLASS C, AND CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS B
SHARES SHOWN ABOVE DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------------------------------------------------------------------------------
CLASS B SHARES* CLASS A SHARES+
- ----------------------------------------------- -----------------------------------------------
<S> <C> <C> <C> <C> <C>
1 Year 7.59%(1) 2.59%(2) 1 Year 8.10%(1) 2.42%(2)
5 Year 17.74(1) 17.53(2) Since Inception (7/28/97) 12.25(1) 8.51(2)
10 Year 15.23(1) 15.23(2)
</TABLE>

<TABLE>
<CAPTION>
CLASS C SHARES++ CLASS D SHARES++
- ----------------------------------------------- -----------------------------------------------
1 Year 7.26%(1) 6.26%(2) 1 Year 8.33%(1)
<S> <C> <C> <C> <C> <C>
Since Inception (7/28/97) 11.41(1) 11.41(2) Since Inception (7/28/97) 12.51(1)
</TABLE>

- ------------------------
(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value assuming a complete redemption on February 28, 1999.
(4) The Standard & Poor's 500 Stock Index (S&P 500) is a broad-based index, the
performance of which is based on the average performance of 500 widely held
common stocks. The performance of the Index does not include any expenses,
fees or charges. The Index is unmanaged and should not be considered an
investment.
(5) The Lipper Growth and Income Funds Index is an equally-weighted performance
index of the largest-qualifying funds (based on net assets) in the Lipper
Growth and Income Funds objective. The Index, which is adjusted for capital
gains distributions and income dividends, is unmanaged and should not be
considered an investment. There are currently 30 funds represented in this
Index.
* The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%.
The CDSC declines to 0% after six years.
+ The maximum front-end sales charge for Class A is 5.25%.
++ The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
++ Class D shares have no sales charge.

3
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1999
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (92.4%)
AEROSPACE (3.2%)
2,300,000 Goodrich (B.F.) Co. (The)......................................................... $ 78,487,500
3,800,000 Lockheed Martin Corp.............................................................. 143,212,500
3,100,000 United Technologies Corp.......................................................... 384,012,500
---------------
605,712,500
---------------
ALUMINUM (1.7%)
3,900,000 Alcan Aluminium Ltd. (Canada)..................................................... 94,818,750
5,418,000 Alcoa Inc......................................................................... 219,429,000
---------------
314,247,750
---------------
APPAREL (0.6%)
2,250,000 VF Corp........................................................................... 108,281,250
---------------
AUTO PARTS: O.E.M. (1.9%)
2,550,000 Dana Corp......................................................................... 96,262,500
1,446,000 Delphi Automotive Systems Corp.*.................................................. 26,660,625
2,150,000 Johnson Controls, Inc............................................................. 132,225,000
2,350,000 TRW Inc........................................................................... 111,037,500
---------------
366,185,625
---------------
AUTOMOTIVE AFTERMARKET (0.6%)
2,475,000 Goodyear Tire & Rubber Co......................................................... 114,468,750
---------------
BEVERAGES - NON-ALCOHOLIC (2.3%)
3,900,000 Coca Cola Co...................................................................... 249,356,250
5,072,500 PepsiCo, Inc...................................................................... 190,852,812
---------------
440,209,062
---------------
BUILDING PRODUCTS (0.3%)
1,225,000 Armstrong World Industries, Inc................................................... 60,254,687
---------------
COMPUTER HARDWARE (2.5%)
2,820,000 International Business Machines Corp.............................................. 479,400,000
---------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS (1.4%)
2,600,000 Caterpillar, Inc.................................................................. 118,462,500
4,275,000 Deere & Co........................................................................ 139,739,062
---------------
258,201,562
---------------
CONSUMER ELECTRONICS/APPLIANCES (0.5%)
2,200,000 Whirlpool Corp.................................................................... 95,700,000
---------------
CONTAINERS/PACKAGING (0.5%)
3,100,000 Crown Cork & Seal Co., Inc........................................................ 86,025,000
---------------
DEPARTMENT STORES (1.4%)
2,591,000 May Department Stores Co.......................................................... 153,516,750
2,950,000 Sears, Roebuck & Co............................................................... 119,843,750
---------------
273,360,500
---------------

<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DISCOUNT CHAINS (2.9%)
8,700,000 Dayton Hudson Corp................................................................ $ 544,293,750
---------------
DIVERSIFIED ELECTRONIC PRODUCTS (0.8%)
2,282,000 Honeywell, Inc.................................................................... 159,597,375
---------------
DIVERSIFIED FINANCIAL SERVICES (1.7%)
3,075,000 Providian Financial Corp.......................................................... 314,034,375
---------------
DIVERSIFIED MANUFACTURING (0.8%)
1,984,000 Minnesota Mining & Manufacturing Co............................................... 146,940,000
---------------
ELECTRIC UTILITIES (3.4%)
2,550,000 Dominion Resources, Inc........................................................... 98,493,750
2,425,000 FPL Group, Inc.................................................................... 124,735,937
3,250,000 GPU, Inc.......................................................................... 129,593,750
4,842,500 Reliant Energy, Inc............................................................... 129,839,531
4,525,500 Unicom Corp....................................................................... 160,938,094
---------------
643,601,062
---------------
ELECTRONIC COMPONENTS (0.9%)
3,050,000 AMP, Inc.......................................................................... 162,221,875
---------------
ENGINEERING & CONSTRUCTION (0.4%)
2,400,000 Fluor Corp........................................................................ 84,450,000
---------------
FINANCE COMPANIES (3.2%)
4,000,000 Associates First Capital Corp. (Class A).......................................... 162,500,000
3,800,400 Fannie Mae........................................................................ 266,028,000
4,250,000 Household International, Inc...................................................... 172,656,250
---------------
601,184,250
---------------
FOOD CHAINS (1.5%)
2,850,000 Albertson's, Inc.................................................................. 162,450,000
93,000 American Stores Co................................................................ 3,138,750
2,500,000 Winn-Dixie Stores, Inc............................................................ 109,531,250
---------------
275,120,000
---------------
FOOD DISTRIBUTORS (1.1%)
3,650,000 Supervalu, Inc.................................................................... 87,828,125
4,500,000 SYSCO Corp........................................................................ 127,125,000
---------------
214,953,125
---------------
FOREST PRODUCTS (0.8%)
2,763,000 Weyerhaeuser Co................................................................... 154,037,250
---------------
HOME FURNISHINGS (0.2%)
900,000 Rubbermaid, Inc................................................................... 29,756,250
---------------
INTEGRATED OIL COMPANIES (5.1%)
2,000,000 Atlantic Richfield Co............................................................. 109,250,000
2,350,000 BP Amoco PLC (ADR) (United Kingdom)............................................... 199,750,000
3,389,000 Exxon Corp........................................................................ 225,580,312
1,629,500 Kerr-McGee Corp................................................................... 46,542,594
2,600,000 Mobil Corp........................................................................ 216,287,500
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1999, CONTINUED
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
3,900,000 Royal Dutch Petroleum Co. (ADR) (Netherlands)..................................... $ 171,112,500
---------------
968,522,906
---------------
LIFE INSURANCE (1.8%)
1,575,000 Aegon N.V. (ARS) (Netherlands).................................................... 164,784,375
2,550,000 Jefferson-Pilot Corp.............................................................. 172,921,875
---------------
337,706,250
---------------
MAJOR BANKS (4.7%)
8,444,348 BankAmerica Corp.................................................................. 551,521,479
5,200,000 KeyCorp........................................................................... 167,700,000
1,500,000 Morgan (J.P.) & Co., Inc.......................................................... 167,156,250
---------------
886,377,729
---------------
MAJOR CHEMICALS (3.3%)
1,575,000 Dow Chemical Co................................................................... 154,940,625
4,047,000 Du Pont (E.I.) de Nemours & Co., Inc.............................................. 207,661,687
2,975,000 Hercules, Inc..................................................................... 82,370,312
3,830,000 Monsanto Co....................................................................... 174,504,375
---------------
619,476,999
---------------
MAJOR PHARMACEUTICALS (11.0%)
6,664,000 Abbott Laboratories............................................................... 309,459,500
6,450,000 American Home Products Corp....................................................... 383,775,000
3,373,400 Bristol-Myers Squibb Co........................................................... 424,837,563
10,200,000 Schering-Plough Corp.............................................................. 570,562,500
5,600,000 Smithkline Beecham PLC (ADR) (United Kingdom)..................................... 398,300,000
---------------
2,086,934,563
---------------
MAJOR U.S. TELECOMMUNICATIONS (3.2%)
3,660,000 Bell Atlantic Corp................................................................ 210,221,250
3,100,000 GTE Corp.......................................................................... 201,112,500
3,550,000 U.S. West, Inc.................................................................... 189,259,375
---------------
600,593,125
---------------
MANAGED HEALTH CARE (0.7%)
1,875,000 Aetna Inc......................................................................... 138,867,188
---------------
MILITARY/GOV'T/TECHNICAL (0.9%)
3,099,000 Raytheon Co. (Class B)............................................................ 165,602,813
---------------
MOTOR VEHICLES (3.5%)
2,272,657 DaimlerChrysler AG (Germany)*..................................................... 213,487,717
3,925,000 Ford Motor Co..................................................................... 232,801,563
2,700,000 General Motors Corp............................................................... 222,918,750
---------------
669,208,030
---------------
MULTI-LINE INSURANCE (1.2%)
2,375,000 Lincoln National Corp............................................................. 224,882,813
---------------

<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MULTI-SECTOR COMPANIES (2.5%)
3,830,000 General Electric Co............................................................... $ 384,196,875
3,350,000 Tenneco, Inc...................................................................... 100,290,625
---------------
484,487,500
---------------
NATURAL GAS (0.7%)
2,300,000 Consolidated Natural Gas Co....................................................... 126,356,250
---------------
OFFICE EQUIPMENT/SUPPLIES (3.4%)
4,850,000 Pitney Bowes, Inc................................................................. 306,459,375
6,200,000 Xerox Corp........................................................................ 342,162,500
---------------
648,621,875
---------------
OIL & GAS PRODUCTION (0.6%)
3,350,000 Burlington Resources, Inc......................................................... 108,456,250
---------------
OIL REFINING/MARKETING (0.6%)
5,150,000 USX-Marathon Group................................................................ 106,540,625
---------------
OIL/GAS TRANSMISSION (2.1%)
3,150,000 El Paso Energy Corp............................................................... 114,778,125
3,250,000 Enron Corp........................................................................ 211,250,000
2,850,000 Sonat, Inc........................................................................ 72,140,625
---------------
398,168,750
---------------
OTHER METALS/MINERALS (0.5%)
1,875,000 Phelps Dodge Corp................................................................. 90,937,500
---------------
PACKAGE GOODS/COSMETICS (5.8%)
6,000,000 Avon Products, Inc................................................................ 249,750,000
5,800,000 Gillette Co....................................................................... 311,025,000
2,100,000 International Flavors & Fragrances, Inc........................................... 86,493,750
2,750,000 Kimberly-Clark Corp............................................................... 129,937,500
3,650,000 Procter & Gamble Co............................................................... 326,675,000
---------------
1,103,881,250
---------------
PACKAGED FOODS (0.9%)
3,049,000 Quaker Oats Company (The)......................................................... 166,551,625
---------------
PAINTS/COATINGS (0.6%)
2,125,000 PPG Industries, Inc............................................................... 110,632,813
---------------
PAPER (1.1%)
2,750,000 International Paper Co............................................................ 115,500,000
3,100,000 Mead Corp......................................................................... 94,356,250
---------------
209,856,250
---------------
PHOTOGRAPHIC PRODUCTS (0.8%)
2,300,000 Eastman Kodak Co.................................................................. 152,231,250
---------------
RAILROADS (1.4%)
4,800,000 Burlington Northern Santa Fe Corp................................................. 159,000,000
2,725,000 CSX Corp.......................................................................... 106,956,250
---------------
265,956,250
---------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS FEBRUARY 28, 1999, CONTINUED

<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
RENTAL/LEASING COMPANIES (0.3%)
2,275,000 Ryder System, Inc................................................................. $ 61,425,000
---------------
SPECIALTY FOODS/CANDY (0.5%)
3,350,000 ConAgra, Inc...................................................................... 100,918,750
---------------
TOBACCO (0.6%)
4,100,000 UST, Inc.......................................................................... 121,206,250
---------------

TOTAL COMMON STOCKS
(IDENTIFIED COST $8,198,778,984).................................................. 17,486,636,602
---------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS
- ---------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS (3.2%)
$100,000 U.S. Treasury Note
5.50% due 02/29/00................................................................ 100,438,000
500,000 U.S. Treasury Note
5.625% due 04/30/00............................................................... 503,000,000
---------------

TOTAL U.S. GOVERNMENT OBLIGATIONS
(IDENTIFIED COST $599,855,468)...................................................... 603,438,000
---------------

SHORT-TERM INVESTMENTS (4.1%)
COMMERCIAL PAPER (a) (3.2%)
FINANCE - AUTOMOTIVE (3.2%)
140,000 BMW U.S. Capital Corp. 4.78% due 03/16/99........................................... 139,721,167
150,000 Chrysler Financial Corp. 4.81% due 03/01/99......................................... 150,000,000
150,000 Ford Motor Credit Co. 4.84% due 03/04/99............................................ 149,939,500
160,000 General Motors Acceptance Corp. 4.82% due 03/08/99.................................. 159,850,044
---------------

TOTAL COMMERCIAL PAPER
(AMORTIZED COST $599,510,711)....................................................... 599,510,711
---------------

U.S. GOVERNMENT AGENCY (a) (0.9%)
179,000 Federal Home Loan Mortgage Corp. 4.70% due 03/01/99 (AMORTIZED COST $179,000,000)... 179,000,000
---------------

<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

REPURCHASE AGREEMENT (0.0%)
$ 403 The Bank of New York 4.75% due 03/01/99 (dated 02/26/99; proceeds $403,090) (b)
(IDENTIFIED COST $402,984)........................................................ $ 402,984
---------------

TOTAL SHORT-TERM INVESTMENTS
(IDENTIFIED COST $778,913,695)...................................................... 778,913,695
---------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $9,577,548,147) (C)................................................... 99.7 % 18,868,988,297

OTHER ASSETS IN EXCESS OF LIABILITIES.................................................. 0.3 52,727,763
------ ----------------

NET ASSETS............................................................................. 100.0 % $ 18,921,716,060
------ ----------------
------ ----------------
</TABLE>

- ---------------------

ADR American Depository Receipt.
ARS American Registered Share.
* Non-income producing security.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) Collateralized by $319,808 U.S. Treasury Bond 8.125% due 08/15/21 valued at
$411,044.
(c) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $9,710,807,883 and the
aggregate gross unrealized depreciation is $419,367,733, resulting in net
unrealized appreciation of $9,291,440,150.

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $9,577,548,147)......................................................... $18,868,988,297
Receivable for:
Dividends.............................................................................. 45,852,522
Capital stock sold..................................................................... 21,317,954
Interest............................................................................... 12,166,197
Prepaid expenses and other assets.......................................................... 417,537
---------------
TOTAL ASSETS.......................................................................... 18,948,742,507
---------------
LIABILITIES:
Payable for:
Plan of distribution fee............................................................... 10,554,522
Capital stock repurchased.............................................................. 10,280,184
Investment management fee.............................................................. 5,435,703
Accrued expenses and other payables........................................................ 756,038
---------------
TOTAL LIABILITIES..................................................................... 27,026,447
---------------
NET ASSETS............................................................................ $18,921,716,060
---------------
---------------
COMPOSITION OF NET ASSETS:
Paid-in-capital............................................................................ $ 9,324,194,628
Net unrealized appreciation................................................................ 9,291,440,150
Accumulated undistributed net investment income............................................ 56,427,122
Accumulated undistributed net realized gain................................................ 249,654,160
---------------
NET ASSETS............................................................................ $18,921,716,060
---------------
---------------
CLASS A SHARES:
Net Assets................................................................................. $227,456,994
Shares Outstanding (500,000,000 SHARES AUTHORIZED, $.01 PAR VALUE)......................... 3,777,381
NET ASSET VALUE PER SHARE............................................................. $60.22
---------------
---------------

MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)..................................... $63.56
---------------
---------------
CLASS B SHARES:
Net Assets................................................................................. $18,060,847,702
Shares Outstanding (500,000,000 SHARES AUTHORIZED, $.01 PAR VALUE)......................... 300,101,280
NET ASSET VALUE PER SHARE............................................................. $60.18
---------------
---------------
CLASS C SHARES:
Net Assets................................................................................. $144,424,733
Shares Outstanding (500,000,000 SHARES AUTHORIZED, $.01 PAR VALUE)......................... 2,406,129
NET ASSET VALUE PER SHARE............................................................. $60.02
---------------
---------------
CLASS D SHARES:
Net Assets................................................................................. $488,986,631
Shares Outstanding (500,000,000 SHARES AUTHORIZED, $.01 PAR VALUE)......................... 8,115,165
NET ASSET VALUE PER SHARE............................................................. $60.26
---------------
---------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1999

<TABLE>
<S> <C>
NET INVESTMENT INCOME:

INCOME
Dividends (net of $1,825,517 foreign withholding tax)....................................... $ 339,824,396
Interest.................................................................................... 100,266,418
--------------

TOTAL INCOME........................................................................... 440,090,814
--------------

EXPENSES
Plan of distribution fee (Class A shares)................................................... 329,437
Plan of distribution fee (Class B shares)................................................... 120,000,897
Plan of distribution fee (Class C shares)................................................... 1,021,408
Investment management fee................................................................... 64,189,996
Transfer agent fees and expenses............................................................ 13,000,952
Custodian fees.............................................................................. 754,506
Shareholder reports and notices............................................................. 640,887
Registration fees........................................................................... 522,305
Professional fees........................................................................... 52,743
Directors' fees and expenses................................................................ 17,622
Other....................................................................................... 199,775
--------------

TOTAL EXPENSES......................................................................... 200,730,528
--------------

NET INVESTMENT INCOME.................................................................. 239,360,286
--------------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain........................................................................... 606,047,528
Net change in unrealized appreciation....................................................... 480,919,311
--------------

NET GAIN............................................................................... 1,086,966,839
--------------

NET INCREASE................................................................................ $1,326,327,125
--------------
--------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
FEBRUARY 28, 1999 FEBRUARY 28, 1998*
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income............................................ $ 239,360,286 $ 242,721,488
Net realized gain................................................ 606,047,528 262,042,293
Net change in unrealized appreciation............................ 480,919,311 3,358,692,314
----------------- ----------------------

NET INCREASE................................................ 1,326,327,125 3,863,456,095
----------------- ----------------------

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares............................................... (2,629,429) (589,361)
Class B shares............................................... (221,780,945) (235,858,916)
Class C shares............................................... (1,069,758) (262,929)
Class D shares............................................... (8,313,813) (4,131,290)
Net realized gain
Class A shares............................................... (5,076,567) (252,349)
Class B shares............................................... (523,178,010) (212,169,081)
Class C shares............................................... (3,300,551) (142,422)
Class D shares............................................... (13,056,873) (1,469,529)
----------------- ----------------------

TOTAL DIVIDENDS AND DISTRIBUTIONS........................... (778,405,946) (454,875,877)
----------------- ----------------------

Net increase from capital stock transactions..................... 883,514,920 1,174,921,008
----------------- ----------------------

NET INCREASE................................................ 1,431,436,099 4,583,501,226

NET ASSETS:
Beginning of period.............................................. 17,490,279,961 12,906,778,735
----------------- ----------------------

END OF PERIOD
(INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $56,427,122
AND $50,860,781, RESPECTIVELY)............................... $ 18,921,716,060 $ 17,490,279,961
----------------- ----------------------
----------------- ----------------------
</TABLE>

- ---------------------

* Class A, Class C and Class D shares were issued July 28, 1997.

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999

1. ORGANIZATION AND ACCOUNTING POLICIES

Morgan Stanley Dean Witter Dividend Growth Securities Inc. (the "Fund"),
formerly Dean Witter Dividend Growth Securities Inc., is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund's investment objective is to
provide reasonable current income and long-term growth of income and capital.
The Fund seeks to achieve its objective by investing primarily in common stocks
of companies with a record of paying dividends and the potential for increasing
dividends. The Fund was incorporated in Maryland on December 22, 1980 and
commenced operations on March 30, 1981. On July 28, 1997, the Fund commenced
offering three additional classes of shares, with the then current shares, other
than shares which were purchased prior to July 2, 1984 (and with respect to such
shares, certain shares acquired through reinvestment of dividends and capital
gains distributions (collectively the "Old Shares")) and shares held by certain
employee benefit plans established by Dean Witter Reynolds Inc. and its
affiliate, SPS Transaction Services, Inc., designated as Class B shares. The Old
Shares and shares held by those employee benefit plans prior to July 28, 1997
have been designated Class D shares.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares, are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York or American or other domestic or foreign stock exchange is valued at
its latest sale price on that exchange prior to the time when assets are valued;
if there were no sales that day, the security is valued at the latest bid price;
(2) all other portfolio securities for which over-the-counter market quotations
are readily available are valued at the latest available bid price prior to the
time of valuation; (3) when market quotations are not readily available,
including circumstances under which it is determined by

10
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999, CONTINUED

Morgan Stanley Dean Witter Advisors Inc. (the "Investment Manager"), formerly
Dean Witter InterCapital Inc., that sale or bid prices are not reflective of a
security's market value, portfolio securities are valued at their fair value as
determined in good faith under procedures established by and under the general
supervision of the Directors (valuation of debt securities for which market
quotations are not readily available may be based upon current market prices of
securities which are comparable in coupon, rating and maturity or an appropriate
matrix utilizing similar factors); and (4) short-term debt securities having a
maturity date of more than sixty days at time of purchase are valued on a mark-
to-market basis until sixty days prior to maturity and thereafter at amortized
cost based on their value on the 61st day. Short-term debt securities having a
maturity date of sixty days or less at the time of purchase are valued at
amortized cost.

B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date.
Discounts are accreted over the life of the respective securities. Interest
income is accrued daily.

C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

E. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which may
differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment

11
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999, CONTINUED

income or distributions in excess of net realized capital gains. To the extent
they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.

2. INVESTMENT MANAGEMENT AGREEMENT

Pursuant to an Investment Management Agreement with the Investment Manager, the
Fund pays a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 0.625% to the portion of daily net assets not exceeding $250
million; 0.50% to the portion of daily net assets exceeding $250 million but not
exceeding $1 billion; 0.475% to the portion of daily net assets exceeding $1
billion but not exceeding $2 billion; 0.45% to the portion of daily net assets
exceeding $2 billion but not exceeding $3 billion; 0.425% to the portion of
daily net assets exceeding $3 billion but not exceeding $4 billion; 0.40% to the
portion of daily net assets exceeding $4 billion but not exceeding $5 billion;
0.375% to the portion of daily net assets exceeding $5 billion but not exceeding
$6 billion; 0.35% to the portion of daily net assets exceeding $6 billion but
not exceeding $8 billion; 0.325% to the portion of daily net assets exceeding $8
billion but not exceeding $10 billion; 0.30% to the portion of daily net assets
exceeding $10 billion but not exceeding $15 billion; and 0.275% to the portion
of daily net assets exceeding $15 billion.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager. The Fund has
adopted a Plan of Distribution (the "Plan"), pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 1.0% of the
lesser of: (a) the average daily aggregate gross sales of the Class B shares
since the inception of the Plan on July 2, 1984 (not including reinvestment of
dividend or capital gain distributions) less the

12
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999, CONTINUED

average daily aggregate net asset value of the Class B shares redeemed since the
Plan's inception upon which a contingent deferred sales charge has been imposed
or waived; or (b) the average daily net assets of Class B attributable to shares
issued, net of related shares redeemed, since the Plan's inception; and (iii)
Class C -- up to 1.0% of the average daily net assets of Class C. In the case of
Class A shares, amounts paid under the Plan are paid to the Distributor for
services provided. In the case of Class B and Class C shares, amounts paid under
the Plan are paid to the Distributor for (1) services provided and the expenses
borne by it and others in the distribution of the shares of these Classes,
including the payment of commissions for sales of these Classes and incentive
compensation to, and expenses of, Morgan Stanley Dean Witter Financial Advisors,
and others who engage in or support distribution of the shares or who service
shareholder accounts, including overhead and telephone expenses; (2) printing
and distribution of prospectuses and reports used in connection with the
offering of these shares to other than current shareholders; and (3)
preparation, printing and distribution of sales literature and advertising
materials. In addition, the Distributor may utilize fees paid pursuant to the
Plan, in the case of Class B shares, to compensate Dean Witter Reynolds Inc.
("DWR"), an affiliate of the Investment Manager and Distributor, and other
selected broker-dealers for their opportunity costs in advancing such amounts,
which compensation would be in the form of a carrying charge on any unreimbursed
expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $261,764,444 at February 28, 1999.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that the expenses
representing a gross sales credit to account executives may be reimbursed in the
subsequent calendar year. For the year ended February 28, 1999, the distribution
fee was accrued for Class A shares and Class C shares at the annual rate of
0.21% and 1.00%, respectively.

13
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999, CONTINUED

The Distributor has informed the Fund that for the year ended February 28, 1999,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $44,737, $15,587,266
and $122,956, respectively and received $995,027 in front-end sales charges from
sales of the Fund's Class A shares. The respective shareholders pay such charges
which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the year ended February 28, 1999 aggregated
$2,536,002,792 and $2,263,829,326, respectively. Included in the aforementioned
are purchases and sales of U.S. Government securities of $845,542,969 and
$1,630,108,594, respectively.

For the year ended February 28, 1999, the Fund incurred $306,619 in brokerage
commissions with DWR for portfolio transactions executed on behalf of the Fund.

For the year ended February 28, 1999, the Fund incurred brokerage commissions of
$189,929 with Morgan Stanley & Co., Inc., an affiliate of the Investment Manager
and Distributor, for portfolio transactions executed on behalf of the Fund.

The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Directors of the Fund who will have served as independent
Directors for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the year ended February 28, 1999
included in Directors' fees and expenses in the Statement of Operations amounted
to $6,407. At February 28, 1999, the Fund had an accrued pension liability of
$52,676 which is included in accrued expenses in the Statement of Assets and
Liabilities.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At February 28, 1999, the Fund had
transfer agent fees and expenses payable of approximately $72,500.

14
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999, CONTINUED

5. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
FEBRUARY 28, 1999 FEBRUARY 28, 1998+*
----------------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold......................................... 2,876,877 $ 170,240,232 1,531,951 $ 82,190,159
Reinvestment of dividends and
distributions............................... 115,901 6,832,652 10,089 547,397
Redeemed..................................... (670,884) (39,915,516) (86,553) (4,728,188)
---------------- ---------------- ---------------- ----------------
Net increase - Class A....................... 2,321,894 137,157,368 1,455,487 78,009,368
---------------- ---------------- ---------------- ----------------

CLASS B SHARES
Sold......................................... 41,065,402 2,454,734,237 51,834,503 2,670,318,255
Reinvestment of dividends and
distributions............................... 11,692,435 692,257,292 7,994,489 416,521,197
Redeemed..................................... (43,749,714) (2,596,707,850) (39,948,415) (2,062,805,412)
---------------- ---------------- ---------------- ----------------
Net increase - Class B....................... 9,008,123 550,283,679 19,880,577 1,024,034,040
---------------- ---------------- ---------------- ----------------

CLASS C SHARES
Sold......................................... 1,945,008 116,417,760 930,792 50,207,370
Reinvestment of dividends and
distributions............................... 71,052 4,189,216 6,914 374,891
Redeemed..................................... (481,183) (28,373,226) (66,455) (3,610,402)
---------------- ---------------- ---------------- ----------------
Net increase - Class C....................... 1,534,877 92,233,750 871,251 46,971,859
---------------- ---------------- ---------------- ----------------

CLASS D SHARES
Sold......................................... 1,439,703 86,416,098 841,753 45,989,589
Reinvestment of dividends and
distributions............................... 351,263 20,757,304 101,638 5,504,556
Shares issued in connection with the
acquisition of Dean Witter Retirement
Series--Dividend Growth Series.............. 1,765,858 96,172,282 -- --
Redeemed..................................... (1,689,580) (99,505,561) (474,716) (25,588,404)
---------------- ---------------- ---------------- ----------------
Net increase - Class D....................... 1,867,244 103,840,123 468,675 25,905,741
---------------- ---------------- ---------------- ----------------
Net increase in Fund......................... 14,732,138 $ 883,514,920 22,675,990 $ 1,174,921,008
---------------- ---------------- ---------------- ----------------
---------------- ---------------- ---------------- ----------------
</TABLE>

- ---------------------

+ On July 28, 1997, 5,779,246 shares representing $308,785,103 were
transferred to Class D.
* For Class A, C, and D shares, for the period July 28, 1997 (issue date)
through February 28, 1998.

6. FUND ACQUISITION

As of the close business on September 11, 1998, the Fund acquired all the net
assets of Dean Witter Retirement Series -- Dividend Growth Series ("Retirement
Dividend Growth") pursuant to a plan of reorganization approved by shareholders
of Retirement Dividend Growth on August 19, 1998. The acquisition was
accomplished by a tax-free exchange of 1,765,858 Class D shares of the Fund at a
net asset value of $54.47 per share for 6,721,613 shares of Retirement Dividend
Growth. The net assets of the Fund and Retirement Dividend Growth immediately
before the acquisition were $16,582,111,142 and $96,172,282, respectively,
including unrealized appreciation of $8,813,294 for Retirement Dividend Growth.
Immediately after the acquisition, the combined net assets of the Fund amounted
to $16,678,283,424.

15
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of capital stock outstanding
throughout each period:

<TABLE>
<CAPTION>
FOR THE YEAR ENDED FEBRUARY 28,
---------------------------------------------------------
1999++ 1998*++ 1997 1996** 1995
- -----------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C>
CLASS B SHARES

SELECTED PER SHARE DATA:

Net asset value, beginning of period.... $ 58.36 $ 46.60 $ 39.65 $ 31.16 $ 30.86
-------- -------- ------- ------- -------

Income from investment operations:
Net investment income................ 0.77 0.84 0.81 0.75 0.72
Net realized and unrealized gain..... 3.58 12.50 7.55 8.50 0.24
-------- -------- ------- ------- -------

Total income from investment
operations............................. 4.35 13.34 8.36 9.25 0.96
-------- -------- ------- ------- -------

Less dividends and distributions from:
Net investment income................ (0.75) (0.83) (0.88) (0.67) (0.66)
Net realized gain.................... (1.78) (0.75) (0.53) (0.09) --
-------- -------- ------- ------- -------

Total dividends and distributions....... (2.53) (1.58) (1.41) (0.76) (0.66)
-------- -------- ------- ------- -------

Net asset value, end of period.......... $ 60.18 $ 58.36 $ 46.60 $ 39.65 $ 31.16
-------- -------- ------- ------- -------
-------- -------- ------- ------- -------

TOTAL RETURN+........................... 7.59% 29.10% 21.37% 30.01% 3.25%

RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 1.11%(1) 1.14% 1.22% 1.31% 1.42%

Net investment income................... 1.29%(1) 1.61% 1.95% 2.14% 2.42%

SUPPLEMENTAL DATA:
Net assets, end of period, in
millions............................... $18,061 $16,989 $12,907 $9,782 $7,101

Portfolio turnover rate................. 13% 4% 4% 10% 6%
</TABLE>

- ---------------------

* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date, other than shares which were purchased
prior to July 2, 1984 (and with respect to such shares, certain shares
acquired through reinvestment of dividends and capital gains distributions
(collectively the Old Shares)) and shares held by certain employee benefit
plans established by Dean Witter Reynolds Inc. and its affiliate, SPS
Transaction Services, Inc., have been designated Class B shares. The Old
Shares and shares held by those employee benefit plans prior to July 28,
1997 have been designated Class D shares.
** Year ended February 29.
++ The per share amounts were computed using an average number of shares
outstanding.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR JULY 28, 1997*
ENDED THROUGH
FEBRUARY 28, FEBRUARY 28,
1999 1998
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 58.39 $ 53.43
------ ------
Income from investment operations:
Net investment income.............................................. 1.05 0.66
Net realized and unrealized gain................................... 3.58 5.22
------ ------
Total income from investment operations............................... 4.63 5.88
------ ------
Less dividends and distributions from:
Net investment income.............................................. (1.02) (0.67)
Net realized gain.................................................. (1.78) (0.25)
------ ------
Total dividends and distributions..................................... (2.80) (0.92)
------ ------
Net asset value, end of period........................................ $ 60.22 $ 58.39
------ ------
------ ------
TOTAL RETURN+......................................................... 8.10% 11.15%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.64%(3) 0.70%(2)
Net investment income................................................. 1.76%(3) 2.09%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in millions................................ $227 $85
Portfolio turnover rate............................................... 13% 4%

CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.................................. $ 58.28 $ 53.43
------ ------
Income from investment operations:
Net investment income.............................................. 0.59 0.43
Net realized and unrealized gain................................... 3.56 5.21
------ ------
Total income from investment operations............................... 4.15 5.64
------ ------
Less dividends and distributions from:
Net investment income.............................................. (0.63) (0.54)
Net realized gain.................................................. (1.78) (0.25)
------ ------
Total dividends and distributions..................................... (2.41) (0.79)
------ ------
Net asset value, end of period........................................ $ 60.02 $ 58.28
------ ------
------ ------
TOTAL RETURN+......................................................... 7.26% 10.68%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.43%(3) 1.45%(2)
Net investment income................................................. 0.97%(3) 1.37%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in millions................................ $144 $51
Portfolio turnover rate............................................... 13% 4%
</TABLE>

- ---------------------

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<S> <C> <C>
CLASS D SHARES++

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period.................................. $ 58.43 $ 53.43
------ ------

Income from investment operations:
Net investment income.............................................. 1.17 0.76
Net realized and unrealized gain................................... 3.59 5.20
------ ------

Total income from investment operations............................... 4.76 5.96
------ ------

Less dividends and distributions from:
Net investment income.............................................. (1.15) (0.71)
Net realized gain.................................................. (1.78) (0.25)
------ ------

Total dividends and distributions..................................... (2.93) (0.96)
------ ------

Net asset value, end of period........................................ $ 60.26 $ 58.43
------ ------
------ ------

TOTAL RETURN+......................................................... 8.33% 11.31%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 0.43%(3) 0.45%(2)

Net investment income................................................. 1.97%(3) 2.39%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in millions................................ $489 $365

Portfolio turnover rate............................................... 13% 4%
</TABLE>

- ---------------------

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>

MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH
SECURITIES INC.
REPORT OF INDEPENDENT ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
OF MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Morgan Stanley Dean Witter Dividend
Growth Securities Inc. (the "Fund"), formerly Dean Witter Dividend Growth
Securities Inc., at February 28, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
February 28, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.

PricewaterhouseCoopers LLP
1177 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10036
APRIL 13, 1999

1999 FEDERAL TAX NOTICE

During the year ended February 28, 1999, the Fund paid to its
shareholders $1.76 per share from long-term capital gains. For
such period, 100% of the income paid qualified for the dividends
received deduction available to corporations.

19
<PAGE>

BOARD OF DIRECTORS

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
John R. Haire
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Barry Fink
Vice President, Secretary and General Counsel

Paul D. Vance
Vice President

Thomas F. Caloia
Treasurer

TRANSFER AGENT

Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER

Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and directors,
fees, expenses and other pertinent information, please see the prospectus of
the Fund.

This report is not authorized for distribution to prospective investors in the
Fund unless preceded or accompanied by an effective prospectus.

MORGAN STANLEY DEAN WITTER
DIVIDEND GROWTH
SECURITIES

[PHOTO]

ANNUAL REPORT
FEBRUARY 28, 1999