<PAGE> 1
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.Two World Trade Center
LETTER TO THE SHAREHOLDERS August 31, 2000 New York, New York 10048
DEAR SHAREHOLDER:
During the six-month period ended August 31, 2000, inflation moderated while
growth in the economy continued to be robust. A confluence of events early in
the period raised concerns about a slowdown in the deployment of new technology,
which in turn led to a sharp correction in the Nasdaq and new-economy stocks.
First, the Department of Justice moved to split up Microsoft to prevent it from
using its monopoly power to restrain competition. Second, President Clinton
spoke of potential controls on the patenting of intellectual property in the
genomics area. The Federal Reserve Board raised the federal funds rate a total
of 75 basis points during the first half of the period, prompted by continued
evidence that the economy was on the verge of overheating. In the latter half of
the period, the economy began to show signs of deceleration, as retail sales,
construction spending and employment registered weaker numbers than expected.
With the Fed keeping rates unchanged at the most recent meeting of the Federal
Open Market Committee, we are optimistic that the economy will achieve a soft
landing.
PERFORMANCE AND PORTFOLIO
For the six-month period ended August 31, 2000, Morgan Stanley Dean Witter
Dividend Growth Securities' Class B shares posted a total return of 11.71
percent, essentially right in line with the 11.72 percent return for the
Standard & Poor's 500 Index (S&P 500).* For the same period the Fund's Class A,
C and D shares returned 12.10 percent, 11.66 percent and 12.23 percent,
respectively. The performance of the Fund's four share classes varies because
each has different expenses. The total return figures given assume the
reinvestment of all distributions but do not reflect the deduction of any
applicable sales charges.
---------------------
*The Standard & Poor's 500 Index (S&P 500(R)) is a broad-based index, the
performance of which is based on the performance of 500 widely held common
stocks chosen for market size, liquidity and industry group representation. The
Index does not include any expenses, fees or charges. The Index is unmanaged
and should not be considered an investment.
<PAGE> 2
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
LETTER TO THE SHAREHOLDERS August 31, 2000, continued
Since its inception, the Fund has utilized a screening process that seeks to
identify undervalued stocks that have a record of paying dividends and the
potential for increasing dividends. During the period, the Fund's screening
process led to overweightings in basic materials, capital goods, energy and
utilities, which currently enjoy strong cash flows and attractive dividend
yields. The Fund remained underweighted in high-technology stocks, which
experienced severe volatility during the period.
Throughout the Fund's 19-year history, growth and value investing styles have
periodically rotated in and out of favor. In recent years, growth stocks have
clearly dominated. During the period under review, however, the market witnessed
a reversal in this trend, as value stocks outperformed growth stocks. This
turnaround contributed positively to the Fund's performance.
While maintaining its commitment to its value-oriented methodology, the Fund has
implemented several changes in response to the growing role that the Internet
and e-commerce play in the global economy. Since late last year, the Fund has
shifted its emphasis toward traditional companies that have made serious
commitments to e-commerce. We believe this added focus on "bricks and clicks"
companies will enable the Fund to participate more fully in the new economy
while maintaining a diversified portfolio of high quality, dividend-paying
stocks.
Portfolio holdings liquidated during the period included Abbott Laboratories,
Armstrong World Industries, Brunswick, Burlington Resources, Conagra, Crown Cork
& Seal, Fluor, Gillette, Hercules, International Flavors and Fragrances,
Lockheed Martin, May Department Stores, Raytheon, U.S. Tobacco and Winn Dixie
Stores. A new portfolio position was initiated in Electronic Data Systems. At
the end of the period, the Fund was invested in 77 equity issues spread among 39
different industry groups.
LOOKING AHEAD
Going forward, we believe that the outlook for the financial markets and the
economy is favorable. As inflation seems poised to remain low, we believe that
the strength in the economy has finally begun to wane as well. Because of these
developments, we do not anticipate that we will see any further
interest-rate tightening in the near future.
2
<PAGE> 3
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
LETTER TO THE SHAREHOLDERS August 31, 2000, continued
We appreciate your ongoing support of Morgan Stanley Dean Witter Dividend Growth
Securities and look forward to continuing to serve your investment needs.
<TABLE>
<S> <C>
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO /s/ MITCHELL M. MERIN
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
</TABLE>
3
<PAGE> 4
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FUND PERFORMANCE August 31, 2000
AVERAGE ANNUAL TOTAL RETURNS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A SHARES*
--------------------------------------------------------
<S> <C> <C>
PERIOD ENDED 8/31/00
-------------------------
1 Year (7.07)%(1) (11.95)%(2)
Since Inception (7/28/97) 5.62 %(1) 3.79 %(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS C SHARES+
--------------------------------------------------------
<S> <C> <C>
PERIOD ENDED 8/31/00
-------------------------
1 Year (7.78)%(1) (8.62)%(2)
Since Inception (7/28/97) 4.82 %(1) 4.82 %(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS B SHARES**
-----------------------------------------------
<S> <C> <C>
PERIOD ENDED 8/31/00
-------------------------
1 Year (7.64)%(1) (11.88)%(2)
5 Years 13.47 %(1) 13.23 %(2)
10 Years 13.78 %(1) 13.78 %(2)
</TABLE>
<TABLE>
<CAPTION>
CLASS D SHARES++
--------------------------------------------------------
<S> <C> <C>
PERIOD ENDED 8/31/00
-------------------------
1 Year (6.86)%(1)
Since Inception (7/28/97) 5.87 %(1)
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
LESS THAN THEIR ORIGINAL COST.
---------------------
<TABLE>
<S> <C>
(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.
* The maximum front-end sales charge for Class A is 5.25%.
** The maximum contingent deferred sales charge (CDSC) for
Class B is 5.0%. The CDSC declines to 0% after six years.
+ 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.
</TABLE>
4
<PAGE> 5
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS August 31, 2000 (unaudited)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
-------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (96.3%)
Aerospace & Defense (0.8%)
2,500,000 Goodrich (B.F.) Co.
(The).................... $ 102,031,250
---------------
Aluminum (3.2%)
3,750,000 Alcan Aluminium Ltd.
(Canada)................. 123,046,875
9,000,000 Alcoa, Inc. .............. 299,250,000
---------------
422,296,875
---------------
Apparel/Footwear (0.4%)
2,500,000 VF Corp. ................. 57,187,500
---------------
Auto Parts - O.E.M. (2.7%)
2,200,000 Dana Corp. ............... 54,312,500
5,500,000 Delphi Automotive Systems
Corp. ................... 90,406,250
2,050,000 Johnson Controls, Inc. ... 109,546,875
2,250,000 TRW Inc. ................. 102,796,875
---------------
357,062,500
---------------
Automotive Aftermarket (0.4%)
2,250,000 Goodyear Tire & Rubber Co.
(The).................... 52,593,750
---------------
Beverages - Non-Alcoholic (3.1%)
3,650,000 Coca-Cola Co. ............ 192,081,250
4,800,000 PepsiCo, Inc. ............ 204,600,000
---------------
396,681,250
---------------
Chemicals - Major Diversified (2.2%)
4,575,000 Dow Chemical Co. (The).... 119,807,812
3,800,000 Du Pont (E.I.) de Nemours
& Co., Inc. ............. 170,525,000
---------------
290,332,812
---------------
Computer Processing Hardware (3.8%)
1,525,000 Hewlett-Packard Co. ...... 184,143,750
2,300,000 International Business
Machines Corp. .......... 303,600,000
---------------
487,743,750
---------------
Department Stores (0.8%)
3,200,000 Sears, Roebuck & Co. ..... 99,800,000
---------------
Discount Stores (1.7%)
9,600,000 Target Corp. ............. 223,200,000
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
-------------------------------------------------------------------
<C> <S> <C>
Electric Utilities (4.8%)
800,000 Dominion Resources,
Inc. .................... $ 42,400,000
2,350,000 FPL Group, Inc. .......... 125,431,250
3,150,000 GPU, Inc. ................ 96,468,750
4,600,000 Reliant Energy, Inc. ..... 170,775,000
4,100,000 Unicom Corp. ............. 187,318,750
---------------
622,393,750
---------------
Electronic Equipment/Instruments (0.7%)
6,000,000 Xerox Corp. .............. 96,375,000
---------------
Electronics/Appliances (0.6%)
2,100,000 Whirlpool Corp. .......... 79,800,000
---------------
Finance/Rental/Leasing (6.5%)
3,800,000 Associates First Capital
Corp. (Class A).......... 106,875,000
3,600,000 Fannie Mae................ 193,500,000
4,050,000 Household International,
Inc. .................... 194,400,000
2,650,000 Providian Financial
Corp. ................... 304,584,375
2,100,000 Ryder System, Inc. ....... 40,293,750
---------------
839,653,125
---------------
Food Distributors (1.8%)
3,600,000 Supervalu, Inc. .......... 53,775,000
4,250,000 SYSCO Corp. .............. 179,828,125
---------------
233,603,125
---------------
Food Retail (0.1%)
567,900 Albertson's, Inc. ........ 12,209,850
---------------
Food - Major Diversified (1.5%)
2,900,000 Quaker Oats Company
(The).................... 197,018,750
---------------
Forest Products (0.9%)
2,600,000 Weyerhaeuser Co. ......... 120,412,500
---------------
Household/Personal Care (4.5%)
5,750,000 Avon Products, Inc. ...... 225,328,125
2,625,000 Kimberly-Clark Corp. ..... 153,562,500
3,450,000 Procter & Gamble Co.
(The).................... 213,253,125
---------------
592,143,750
---------------
Industrial Conglomerates (9.0%)
5,200,000 General Electric Co. ..... 305,175,000
3,650,000 Honeywell International,
Inc. .................... 140,753,125
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE> 6
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS August 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
-------------------------------------------------------------------
<C> <S> <C>
1,884,000 Minnesota Mining &
Manufacturing Co. ....... $ 175,212,000
4,300,000 Tyco International Ltd.
(Bermuda)................ 245,100,000
4,900,000 United Technologies
Corp. ................... 305,943,750
---------------
1,172,183,875
---------------
Industrial Specialties (0.6%)
2,000,000 PPG Industries, Inc. ..... 81,000,000
---------------
Information Technology Services (0.7%)
1,950,000 Electronic Data Systems
Corp. ................... 97,134,375
---------------
Integrated Oil (5.9%)
4,450,000 BP Amoco PLC (ADR)........ 245,862,500
3,550,000 Exxon Mobil Corp. ........ 289,768,750
3,700,000 Royal Dutch Petroleum Co.
(ADR) (Netherlands)...... 226,393,750
---------------
762,025,000
---------------
Life/Health Insurance (4.0%)
2,950,000 Aegon N.V. (ARS)
(Netherlands)............ 115,787,500
2,400,000 Jefferson-Pilot Corp. .... 158,850,000
4,500,000 Lincoln National Corp. ... 243,000,000
---------------
517,637,500
---------------
Major Banks (5.1%)
6,000,000 Bank of America Corp. .... 321,375,000
4,950,000 KeyCorp. ................. 99,928,125
1,425,000 Morgan (J.P.) & Co.,
Inc. .................... 238,242,188
---------------
659,545,313
---------------
Major Telecommunications (2.1%)
6,150,000 Verizon Communications.... 268,293,750
---------------
Managed Health Care (0.6%)
1,300,000 Aetna Inc. ............... 72,718,750
---------------
Motor Vehicles (3.5%)
2,150,000 DaimlerChrysler AG
(Germany)................ 111,934,375
6,500,000 Ford Motor Co. ........... 157,218,750
2,550,000 General Motors Corp. ..... 184,078,125
---------------
453,231,250
---------------
Office Equipment/Supplies (1.3%)
4,600,000 Pitney Bowes, Inc. ....... 168,187,500
---------------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
-------------------------------------------------------------------
<C> <S> <C>
Oil & Gas Pipelines (4.9%)
5,450,000 El Paso Energy Corp. ..... $ 317,462,500
3,700,000 Enron Corp. .............. 314,037,500
---------------
631,500,000
---------------
Oil & Gas Production (0.9%)
1,900,000 Kerr-McGee Corp. ......... 120,056,250
---------------
Oil Refining/Marketing (1.6%)
2,500,000 Sunoco, Inc. ............. 67,968,750
4,900,000 USX-Marathon Group........ 134,443,750
---------------
202,412,500
---------------
Other Metals/Minerals (0.6%)
1,750,000 Phelps Dodge Corp. ....... 77,875,000
---------------
Pharmaceuticals - Major (8.2%)
5,400,000 American Home Products
Corp. ................... 292,612,500
5,450,000 Bristol-Myers Squibb
Co. ..................... 288,850,000
3,500,000 Pharmacia Corp. .......... 204,968,750
6,850,000 Schering-Plough Corp. .... 274,856,250
---------------
1,061,287,500
---------------
Pulp & Paper (1.2%)
2,600,000 International Paper
Co. ..................... 82,875,000
2,950,000 Mead Corp. ............... 79,096,875
---------------
161,971,875
---------------
Railroads (1.3%)
4,550,000 Burlington Northern
Santa Fe Corp. .......... 101,806,250
2,600,000 CSX Corp. ................ 62,075,000
---------------
163,881,250
---------------
Recreational Products (1.0%)
2,150,000 Eastman Kodak Co. ........ 133,837,500
---------------
Semiconductors (1.6%)
2,850,000 Intel Corp. .............. 213,393,750
---------------
Trucks/Construction/Farm Machinery (1.7%)
2,350,000 Caterpillar, Inc. ........ 86,362,500
4,150,000 Deere & Co. .............. 136,690,625
---------------
223,053,125
---------------
TOTAL COMMON STOCKS
(Cost $5,862,878,356)..... 12,523,765,600
---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE> 7
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
PORTFOLIO OF INVESTMENTS August 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
-------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (3.5%)
U.S. GOVERNMENT AGENCY (a) (3.5%)
$ 449,200 Federal National Mortgage Assoc.
6.53% due 09/01/00
(Cost $449,200,000)...... $ 449,200,000
---------------
REPURCHASE AGREEMENT (0.0%)
367 The Bank of New York
6.4375% due 09/01/00
(dated 08/31/00; proceeds
$367,224) (b)
(Cost $367,159).......... 367,159
---------------
TOTAL SHORT-TERM
INVESTMENTS
(Cost $449,567,159)...... 449,567,159
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(Cost $6,312,445,515) (c)...... 99.8% 12,973,332,759
OTHER ASSETS IN EXCESS OF
LIABILITIES.................... 0.2 24,101,470
----- ---------------
NET ASSETS..................... 100.0% $12,997,434,229
===== ===============
</TABLE>
---------------------
<TABLE>
<C> <S>
ADR American Depository Receipt.
ARS American Registered Shares.
(a) Purchased on a discount basis. The interest
rate shown has been adjusted to reflect a
money market equivalent yield.
(b) Collateralized by $167,407 U.S. Treasury Bill
due 09/21/00 valued at $167,407; $38,373 U.S.
Treasury Bond 5.50% due 08/15/28 valued at
$38,470; and $164,848 U.S. Treasury Note 5.50%
due 03/31/03 valued at $168,696.
(c) The aggregate cost for federal income tax
purposes approximates the aggregate cost for
book purposes. The aggregate gross unrealized
appreciation is $6,983,584,331 and the
aggregate gross unrealized depreciation is
$322,697,087, resulting in net unrealized
appreciation of $6,660,887,244.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE> 8
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES
August 31, 2000 (unaudited)
ASSETS:
Investments in securities, at value
(cost $6,312,445,515)................ $12,973,332,759
Receivable for:
Dividends......................... 42,547,033
Investments sold.................. 18,617,554
Capital stock sold................ 4,001,880
Prepaid expenses and other assets..... 252,840
---------------
TOTAL ASSETS...................... 13,038,752,066
---------------
LIABILITIES:
Payable for:
Capital stock repurchased......... 26,241,251
Plan of distribution fee.......... 10,024,258
Investment management fee......... 4,206,967
Payable to bank....................... 1,984
Accrued expenses and other payables... 843,377
---------------
TOTAL LIABILITIES................. 41,317,837
---------------
NET ASSETS........................ $12,997,434,229
===============
COMPOSITION OF NET ASSETS:
Paid-in-capital....................... $ 5,517,605,688
Net unrealized appreciation........... 6,660,887,244
Accumulated undistributed net
investment income.................... 34,627,187
Accumulated undistributed net realized
gain................................. 784,314,110
---------------
NET ASSETS........................ $12,997,434,229
===============
CLASS A SHARES:
Net Assets............................ $225,412,645
Shares Outstanding (500,000,000 shares
authorized, $.01 par value).......... 4,246,815
NET ASSET VALUE PER SHARE......... $53.08
======
MAXIMUM OFFERING PRICE PER SHARE,
(net asset value plus 5.54% of
net asset value)................ $56.02
======
CLASS B SHARES:
Net Assets............................ $12,187,476,666
Shares Outstanding (500,000,000 shares
authorized, $.01 par value).......... 229,666,111
NET ASSET VALUE PER SHARE......... $53.07
======
CLASS C SHARES:
Net Assets............................ $136,805,186
Shares Outstanding (500,000,000 shares
authorized, $.01 par value).......... 2,585,178
NET ASSET VALUE PER SHARE......... $52.92
======
CLASS D SHARES:
Net Assets............................ $447,739,732
Shares Outstanding (500,000,000 shares
authorized, $.01 par value).......... 8,427,484
NET ASSET VALUE PER SHARE......... $53.13
======
</TABLE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS
For the six months ended August 31, 2000 (unaudited)
NET INVESTMENT INCOME:
INCOME
Dividends (net of $622,362 foreign
withholding tax)...................... $ 157,081,542
Interest............................... 12,992,155
--------------
TOTAL INCOME....................... 170,073,697
--------------
EXPENSES
Plan of distribution fee (Class A
shares)............................... 289,648
Plan of distribution fee (Class B
shares)............................... 59,709,110
Plan of distribution fee (Class C
shares)............................... 711,641
Investment management fee.............. 25,748,002
Transfer agent fees and expenses....... 6,196,261
Custodian fees......................... 359,777
Shareholder reports and notices........ 321,457
Registration fees...................... 96,126
Professional fees...................... 32,148
Directors' fees and expenses........... 9,134
Other.................................. 17,781
--------------
TOTAL EXPENSES..................... 93,491,085
--------------
NET INVESTMENT INCOME.............. 76,582,612
--------------
NET REALIZED AND UNREALIZED GAIN:
Net realized gain...................... 785,042,786
Net change in unrealized
appreciation.......................... 646,021,298
--------------
NET GAIN........................... 1,431,064,084
--------------
NET INCREASE........................... $1,507,646,696
==============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE> 9
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL STATEMENTS, continued
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
AUGUST 31, 2000 FEBRUARY 29, 2000
---------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income............................. $ 76,582,612 $ 200,871,846
Net realized gain................................. 785,042,786 1,061,810,935
Net change in unrealized appreciation............. 646,021,298 (3,276,574,204)
--------------- ---------------
NET INCREASE (DECREASE)....................... 1,507,646,696 (2,013,891,423)
--------------- ---------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A shares................................ (2,131,691) (4,193,005)
Class B shares................................ (76,648,176) (200,448,728)
Class C shares................................ (761,014) (1,483,355)
Class D shares................................ (4,662,456) (8,926,874)
Net realized gain
Class A shares................................ (10,489,999) (10,045,473)
Class B shares................................ (574,440,605) (665,653,684)
Class C shares................................ (6,420,346) (6,747,862)
Class D shares................................ (20,074,795) (18,321,098)
--------------- ---------------
TOTAL DIVIDENDS AND DISTRIBUTIONS............. (695,629,082) (915,820,079)
--------------- ---------------
Net decrease from capital stock transactions...... (1,439,277,693) (2,367,310,250)
--------------- ---------------
NET DECREASE.................................. (627,260,079) (5,297,021,752)
NET ASSETS:
Beginning of period............................... 13,624,694,308 18,921,716,060
--------------- ---------------
END OF PERIOD
(Including undistributed net investment income
of $34,627,187 and $42,247,912,
respectively)................................. $12,997,434,229 $13,624,694,308
=============== ===============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE> 10
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS August 31, 2000 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Dividend Growth Securities Inc. (the "Fund") 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 stock 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
converted to a multiple class share structure.
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 portfolio security listed or traded
on the New York or American Stock Exchange, NASDAQ, or other exchange is valued
at its latest sale price prior to the time when assets are valued; if there were
no sales that day, the security is valued at the latest bid price (in cases
where securities are traded on more than one exchange, the securities are valued
on the exchange designated as the primary market pursuant to procedures adopted
by the Trustees); (2) all other portfolio securities for which over-the-counter
market quotations are readily available are valued at the latest available bid
price; (3) when market quotations are not readily available, including
circumstances under which it is determined by Morgan Stanley Dean Witter
Advisors Inc. (the "Investment Manager") 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
10
<PAGE> 11
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS August 31, 2000 (unaudited) continued
(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 tax purposes 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
11
<PAGE> 12
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS August 31, 2000 (unaudited) continued
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.
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 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 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 totaled
$186,687,888 at August 31, 2000.
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,
12
<PAGE> 13
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS August 31, 2000 (unaudited) continued
respectively, will not be reimbursed by the Fund through payments in any
subsequent year, except that the expenses representing a gross sales credit to
Morgan Stanley Dean Witter Financial Advisors or other selected broker-dealer
representatives may be reimbursed in the subsequent calendar year. For the six
months ended August 31, 2000, the distribution fee was accrued for Class A
shares and Class C shares at the annual rate of 0.25% and 1.0%, respectively.
The Distributor has informed the Fund that for the six months ended August 31,
2000, it received contingent deferred sales charges from certain redemptions of
the Fund's Class A shares, Class B shares and Class C shares of $7,151,
$9,975,565 and $42,973, respectively and received $212,696 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 six months ended August 31, 2000 aggregated
$158,761,648, and $2,467,729,747, respectively.
For the six months ended August 31, 2000, the Fund incurred $153,600 in
brokerage commissions with Dean Witter Reynolds Inc. ("DWR"), an affiliate of
the Investment Manager and Distributor, for portfolio transactions executed on
behalf of the Fund. At August 31, 2000, the Fund's receivable for investments
sold included unsettled trades with DWR of $1,344,468.
For the six months ended August 31, 2000, the Fund incurred brokerage
commissions of $236,260 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 six months ended August 31, 2000
included in Directors' fees and expenses in the Statement of Operations amounted
to $3,113. At August 31, 2000, the Fund had an accrued pension liability of
$54,327, which is included in accrued expenses in the Statement of Assets and
Liabilities.
13
<PAGE> 14
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
NOTES TO FINANCIAL STATEMENTS August 31, 2000 (unaudited) continued
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At August 31, 2000, the Fund had
transfer agent fees and expenses payable of approximately $380,000.
5. CAPITAL STOCK
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
AUGUST 31, 2000 FEBRUARY 29, 2000
---------------------------- ----------------------------
(unaudited)
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- --------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold.................................................. 1,061,618 $ 57,527,666 1,994,969 $ 122,849,690
Reinvestment of dividends and distributions........... 230,930 11,777,133 220,693 13,036,456
Redeemed.............................................. (1,329,362) (70,969,461) (1,709,414) (101,555,287)
----------- --------------- ----------- ---------------
Net increase (decrease) -- Class A.................... (36,814) (1,664,662) 506,248 34,330,859
----------- --------------- ----------- ---------------
CLASS B SHARES
Sold.................................................. 6,946,698 375,381,559 25,790,072 1,605,655,514
Reinvestment of dividends and distributions........... 11,779,821 600,932,118 13,531,215 802,060,686
Redeemed.............................................. (45,951,197) (2,425,098,210) (82,531,778) (4,828,912,064)
----------- --------------- ----------- ---------------
Net decrease -- Class B............................... (27,224,678) (1,448,784,533) (43,210,491) (2,421,195,864)
----------- --------------- ----------- ---------------
CLASS C SHARES
Sold.................................................. 430,446 23,164,333 1,554,622 96,103,008
Reinvestment of dividends and distributions........... 136,481 6,941,300 135,281 7,959,717
Redeemed.............................................. (694,011) (36,556,364) (1,383,770) (81,095,212)
----------- --------------- ----------- ---------------
Net increase (decrease) -- Class C.................... (127,084) (6,450,731) 306,133 22,967,513
----------- --------------- ----------- ---------------
CLASS D SHARES
Sold.................................................. 1,494,679 80,714,173 2,262,533 134,440,506
Reinvestment of dividends and distributions........... 466,085 23,808,577 446,610 26,500,428
Redeemed.............................................. (1,612,397) (86,900,517) (2,745,191) (164,353,692)
----------- --------------- ----------- ---------------
Net increase (decrease) -- Class D.................... 348,367 17,622,233 (36,048) (3,412,758)
----------- --------------- ----------- ---------------
Net decrease in Fund.................................. (27,040,209) $(1,439,277,693) (42,434,158) $(2,367,310,250)
=========== =============== =========== ===============
</TABLE>
6. FEDERAL INCOME TAX STATUS
As of February 29, 2000 the Fund had temporary book/tax differences primarily
attributable to capital loss deferrals on wash sales.
14
<PAGE> 15
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 PERIOD
FOR THE SIX FOR THE YEAR FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 FEBRUARY 29, 2000 FEBRUARY 28, 1999 FEBRUARY 28, 1998
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C>
CLASS A SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $50.11 $60.22 $58.39 $53.43
------ ------ ------ ------
Income (loss) from investment operations:
Net investment income............................ 0.48 0.94 1.05 0.66
Net realized and unrealized gain (loss).......... 5.46 (7.75) 3.58 5.22
------ ------ ------ ------
Total income (loss) from investment operations.... 5.94 (6.81) 4.63 5.88
------ ------ ------ ------
Less dividends and distributions from:
Net investment income............................ (0.51) (0.99) (1.02) (0.67)
Net realized gain................................ (2.46) (2.31) (1.78) (0.25)
------ ------ ------ ------
Total dividends and distributions................. (2.97) (3.30) (2.80) (0.92)
------ ------ ------ ------
Net asset value, end of period.................... $53.08 $50.11 $60.22 $58.39
====== ====== ====== ======
TOTAL RETURN+..................................... 12.10%(1) (12.07)% 8.10% 11.15%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 0.72%(2)(3) 0.67 %(3) 0.64%(3) 0.70%(2)
Net investment income............................. 1.74%(2)(3) 1.52 %(3) 1.76%(3) 2.09%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $225,413 $214,669 $227,457 $84,987
Portfolio turnover rate........................... 1%(1) 4 % 13% 4%
</TABLE>
---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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
15
<PAGE> 16
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED FEBRUARY 28,
MONTHS ENDED -------------------------------
AUGUST 31, 2000++ 2000**++ 1999++
---------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of
period.............................. $50.10 $60.18 $58.36
------- ------- -------
Income (loss) from investment
operations:
Net investment income............... 0.29 0.64 0.77
Net realized and unrealized gain
(loss)............................ 5.46 (7.73) 3.58
------- ------- -------
Total income (loss) from investment
operations.......................... 5.75 (7.09) 4.35
------- ------- -------
Less dividends and distributions
from:
Net investment income............... (0.32) (0.68) (0.75)
Net realized gain................... (2.46) (2.31) (1.78)
------- ------- -------
Total dividends and distributions.... (2.78) (2.99) (2.53)
------- ------- -------
Net asset value, end of period....... $53.07 $50.10 $60.18
======= ======= =======
TOTAL RETURN+........................ 11.71%(1) (12.49)% 7.59%
RATIOS TO AVERAGE NET ASSETS:
Expenses............................. 1.39%(2)(3) 1.15%(3) 1.11%(3)
Net investment income................ 1.07%(2)(3) 1.04%(3) 1.29%(3)
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands........................... $12,187,477 $12,869,283 $18,060,848
Portfolio turnover rate.............. 1%(1) 4% 13%
<CAPTION>
FOR THE YEAR ENDED FEBRUARY 28,
--------------------------------------------
1998*++ 1997 1996**
------------------------------------- --------------------------------------------
<S> <C> <C> <C>
CLASS B SHARES
SELECTED PER SHARE DATA:
Net asset value, beginning of
period.............................. $46.60 $39.65 $31.16
------- ------- -------
Income (loss) from investment
operations:
Net investment income............... 0.84 0.81 0.75
Net realized and unrealized gain
(loss)............................ 12.50 7.55 8.50
------- ------- -------
Total income (loss) from investment
operations.......................... 13.34 8.36 9.25
------- ------- -------
Less dividends and distributions
from:
Net investment income............... (0.83) (0.88) (0.67)
Net realized gain................... (0.75) (0.53) (0.09)
------- ------- -------
Total dividends and distributions.... (1.58) (1.41) (0.76)
------- ------- -------
Net asset value, end of period....... $58.36 $46.60 $39.65
======= ======= =======
TOTAL RETURN+........................ 29.10% 21.37% 30.01%
RATIOS TO AVERAGE NET ASSETS:
Expenses............................. 1.14% 1.22% 1.31%
Net investment income................ 1.61% 1.95% 2.14%
SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands........................... $16,989,453 $12,906,779 $9,782,106
Portfolio turnover rate.............. 4% 4% 10%
</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. 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 during the period.
+ 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
16
<PAGE> 17
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 FEBRUARY 29, 2000 FEBRUARY 28, 1999 FEBRUARY 28, 1998
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C>
CLASS C SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $49.96 $60.02 $58.28 $53.43
------ ------ ------ ------
Income (loss) from investment operations:
Net investment income............................ 0.27 0.47 0.59 0.43
Net realized and unrealized gain (loss).......... 5.44 (7.70) 3.56 5.21
------ ------ ------ ------
Total income (loss) from investment operations.... 5.71 (7.23) 4.15 5.64
------ ------ ------ ------
Less dividends and distributions from:
Net investment income............................ (0.29) (0.52) (0.63) (0.54)
Net realized gain................................ (2.46) (2.31) (1.78) (0.25)
------ ------ ------ ------
Total dividends and distributions................. (2.75) (2.83) (2.41) (0.79)
------ ------ ------ ------
Net asset value, end of period.................... $52.92 $49.96 $60.02 $58.28
====== ====== ====== ======
TOTAL RETURN+..................................... 11.66%(1) (12.73)% 7.26% 10.68%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 1.47%(2)(3) 1.43 %(3) 1.43%(3) 1.45%(2)
Net investment income............................. 0.99%(2)(3) 0.76 %(3) 0.97%(3) 1.37%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $136,805 $135,496 $144,425 $50,773
Portfolio turnover rate........................... 1%(1) 4 % 13% 4%
</TABLE>
---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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> 18
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
FINANCIAL HIGHLIGHTS, continued
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 FEBRUARY 29, 2000 FEBRUARY 28, 1999 FEBRUARY 28, 1998
-------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C> <C> <C> <C>
CLASS D SHARES++
SELECTED PER SHARE DATA:
Net asset value, beginning of period.............. $50.16 $60.26 $58.43 $53.43
------ ------ ------ ------
Income (loss) from investment operations:
Net investment income............................ 0.55 1.09 1.17 0.76
Net realized and unrealized gain (loss).......... 5.45 (7.76) 3.59 5.20
------ ------ ------ ------
Total income (loss) from investment operations.... 6.00 (6.67) 4.76 5.96
------ ------ ------ ------
Less dividends and distributions from:
Net investment income............................ (0.57) (1.12) (1.15) (0.71)
Net realized gain................................ (2.46) (2.31) (1.78) (0.25)
------ ------ ------ ------
Total dividends and distributions................. (3.03) (3.43) (2.93) (0.96)
------ ------ ------ ------
Net asset value, end of period.................... $53.13 $50.16 $60.26 $58.43
====== ====== ====== ======
TOTAL RETURN++.................................... 12.23%(1) (11.85)% 8.33% 11.31%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.......................................... 0.47%(2)(3) 0.43 %(3) 0.43%(3) 0.45%(2)
Net investment income............................. 1.99%(2)(3) 1.76 %(3) 1.97%(3) 2.39%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands........... $447,740 $405,246 $488,987 $365,068
Portfolio turnover rate........................... 1%(1) 4 % 13% 4%
</TABLE>
---------------------
* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ 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> 19
MORGAN STANLEY DEAN WITTER DIVIDEND GROWTH SECURITIES INC.
CHANGE IN INDEPENDENT ACCOUNTANTS
On July 1, 2000 PricewaterhouseCoopers LLP resigned as independent accountants
of the Fund.
The reports of PricewaterhouseCoopers LLP on the financial statements of the
Fund for the past two fiscal years contained no adverse opinion or disclaimer of
opinion and were not qualified or modified as to uncertainty, audit scope or
accounting principle.
In connection with its audits for the two most recent fiscal years and through
July 1, 2000, there have been no disagreements with PricewaterhouseCoopers LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements if not resolved
to the satisfaction of PricewaterhouseCoopers LLP would have caused them to make
reference thereto in their report on the financial statements for such years.
The Fund, with the approval of its Board of Directors and its Audit Committee,
engaged Deloitte & Touche LLP as its new independent accountants as of July 1,
2000.
19
<PAGE> 20
DIRECTORS
----------------------------------
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
----------------------------------
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
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
----------------------------------
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
INVESTMENT MANAGER
----------------------------------
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of the
Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
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. Read the
prospectus carefully before investing.
Morgan Stanley Dean Witter Distributors Inc., member NASD.
MORGAN STANLEY
DEAN WITTER
DIVIDEND GROWTH
SECURITIES
[PHOTO]
SEMIANNUAL REPORT
AUGUST 31, 2000
