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A Darling Among Dividend Growth ETFs: (DGRO)

FYI: High dividend strategies may seem like the way for income investors to go with the Federal Reserve looking like it could cut interest rates later this year, but dividend growth exchange traded funds, including the iShares Core Dividend Growth ETF DGRO, +0.21% still merit consideration.

DGRO tracks the Morningstar US Dividend Growth Index and holds 480 stocks, giving it one of the larger rosters among dividend growth ETFs. That index requires members firms to have minimum dividend increase streaks of at least five years, one of the more liberal requirements in the universe of dividend growth ETFs.

Importantly, DGRO's underlying index also excludes companies with excessively high yields and only permits the inclusion of companies with payout ratios of less than 75%.
Regards,
Ted
https://www.marketwatch.com/story/a-darling-among-dividend-growth-etfs-2019-06-21-6463255/print

M* Snapshot DGRO:
https://www.morningstar.com/etfs/arcx/dgro/quote.html

Comments

  • Blah. My own version of DGRO (including some of the same stocks) comes with >2-3X the yield with no ER other than trading fees when bought. I'm good to go.
  • It is interesting to compare DGRO, DGRW, OUSA, QUAL, NOBL, SCHD, and VIG over the last 3, 2, and 1 years and see which ones move ahead of the others. (All outperforming CAPE for the 1- and 2y periods but not longer.)
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