DGRO ETF Review Analysis and Performance Insights

The iShares Core Dividend Growth ETF (DGRO) has gained recognition among investors seeking a viable investment option for long-term dividend growth and income generation.

This Exchange Traded Fund (ETF) primarily focuses on U.S. large-cap stocks with a history of increasing dividends, thereby providing a reliable source of income for shareholders.

This DGRO ETF Review will show the fund’s emphasis on dividend sustainability and diversification contribute to its overall appeal.

Key Takeaways

  • DGRO is a popular choice for investors seeking consistent dividend growth and income generation from U.S. large-cap stocks.
  • The fund’s investment strategy focuses on balancing dividend yield, growth, and payout ratios for a sustainable income source.
  • By targeting financially stable companies with strong dividend growth, DGRO aims to deliver a blend of income and capital appreciation potential.

Fund Overview

DGRO employs a proprietary investment strategy that ingeniously balances dividend yield, growth, and payout ratios.

This approach ensures that companies with unsustainable dividend payouts or weak growth prospects are excluded from the fund’s portfolio.

By investing in financially stable businesses with a solid dividend growth track record, DGRO aims to provide investors with an ideal combination of income generation and potential capital appreciation.

Ah, the elusive iShares Core Dividend Growth ETF (DGRO), a brilliant creation by BlackRock to grace the world of financial instruments. Let’s take a gander at this financial marvel and see what sets it apart, shall we?

Launched on Jun 10, 2014, by the mighty BlackRock, DGRO is a wonderous concoction focusing on dividend growth.

With an annual yield of 2.4%, this admirable fund is keen on rewarding its investors on a monthly basis. In the vast universe of investment options, it’s refreshing to find a fund determined to put dividends at the forefront of its strategy.

The esteemed DGRO invests in U.S. stocks and tracks the Morningstar US Dividend Growth Index. This index filters its stock selection with a keen eye on dividends, dividend growth, and payout ratio. Such meticulous selection criteria ensures that only the cream of the crop stocks are allowed in, helping investors sleep soundly at night.

With an expense ratio of a mere 0.08%, DGRO has proven itself to be quite the affordable option for those in search of low-cost ETFs. Compared to the hefty expense ratio of its rival DIVO at 0.54%, it’s almost as if they’re giving this investment advice away for free!

Of course, we can’t just heap praise on DGRO without mentioning that this fund is ranked 24th in Large Value within the U.S. News rankings. While some might see this as merely a number, 24 does have a nice ring to it – plus, it gives DGRO ample room to grow and impress future investors.

In conclusion, the iShares Core Dividend Growth ETF, under the protective umbrella of BlackRock, offers an intriguing and cost-effective option for those interested in dividend-focused investments. So, dear reader, keep DGRO on your radar, and let its combination of wit and wisdom guide your investment journey.

Investment Strategy

Objective and Methodology

The iShares Core Dividend Growth ETF (DGRO) is an investment option that aims to provide exposure to U.S. companies with a focus on those that have a history of consistent dividend growth.

Assembled with a touch of wit and a sprinkle of sarcasm, this strategy targets firms that not only reward shareholders but also exhibit financial stability and a commitment to growing dividends over time.

The methodology behind DGRO lies in tracking the popular Morningstar US Dividend Growth Index, ensuring that the ETF mirrors the performance of a well-established index.

The key here is to identify companies with a record of at least five years of uninterrupted dividend payments and a capacity for sustaining progressive increases in dividends. With such a strategy, DGRO steps confidently into the realm of consistent income generation, laughing off the doubters in its wake.

Underlying Index

DGRO’s investment strategy mainly revolves around the Morningstar US Dividend Growth Index – an index designed to measure the performance of qualified U.S. firms that have exhibited dividend growth. A bit of dry humor aside, this index is constructed based on strict criteria, including selecting companies with positive earnings forecasts and exclusion of those with extremely high yields.

By meticulously tracking this underlying index, DGRO offers investors a chance to participate in the success of organizations that not only value consistent returns but also strive for growth in a grounded, disciplined manner.

In conclusion, the iShares Core Dividend Growth ETF (DGRO) balances humor, intellect, and a keen investment strategy. With its focus on companies that demonstrate a commitment to stable and progressively increasing dividends, those who invest in DGRO enter the world of reliable income generation, all while embracing the delightful blend of cleverness and whimsy.

Performance Analysis

Past Performance

In the realm of ETF investments, the iShares Core Dividend Growth ETF (DGRO) has shown quite an interesting past performance. The fund seeks to provide exposure to US stocks with a history of sustained dividend growth. As an investor, you might be intrigued by DGRO’s performance over the years, but allow us to shed light on its rather dry numbers.

DGRO’s total return over the past years has been a mix of ups and downs, just like any other successful investor’s emotional journey. The fund has displayed some resilience in generating value for shareholders, despite the rollercoaster ride that is the stock market. A focus on dividend growth and payout ratio has somewhat stabilized the ETF’s performance, bolstering investors’ confidence in its potential.

Comparison to Peers

In this delightful game we call investing, it is crucial to compare DGRO to its peers. In doing so, not only will you obtain profound insights, but you may also witness the daring dance between DGRO and its counterparts in the realm of Large Value ETFs.

One key metric to consider is the fund’s yield, which indicates the income that investors can expect from their holdings. DGRO’s yield has been quite competitive, holding its own against others in its category.

Furthermore, its beta, a measure of the ETF’s sensitivity to market fluctuations, has remained relatively stable over the years, allowing it to maintain its composure in the face of adversity.

In the ever-evolving landscape of ETF investments, the iShares Core Dividend Growth ETF (DGRO) exhibits a perplexing blend of stability and adaptability. Through past performance figures and peer comparisons, the fund has demonstrated a dogged determination to weather the storm, even as it dances gracefully on the razor’s edge of risk and reward.

In the end, DGRO stands as a testament to what can be achieved when one dares to invest in the growth of rich dividends while maintaining a certain elegance of wit and levity.

Portfolio Composition

Top Holdings

The iShares Core Dividend Growth ETF (DGRO) features a diverse selection of holdings across various market sectors, ensuring a well-rounded investment exposure. The top holdings are primarily focused in the U.S. equities market, representing successful and established companies.

Some notable companies in DGRO’s top holdings include:

  • Microsoft Corporation
  • Apple Inc.
  • Johnson & Johnson
  • JPMorgan Chase & Co.
  • Procter & Gamble Co.

This selection of companies showcases the ETF’s emphasis on strong, dividend-growing firms.

Sector Allocation

DGRO’s portfolio composition strikes a balance across multiple sectors, making it a diversified investment option. The ETF’s sector allocation is distributed among industries such as technology, consumer staples, industrials, real estate, and others. Let’s explore the sectors that contribute significantly to DGRO’s performance.

Technology: As the backbone of modern innovation, the technology sector holds a significant weight in DGRO’s portfolio. With prominent companies like Microsoft and Apple leading the charge, technology investments remain a key driver of growth in the ETF.

Consumer Staples: Necessities never go out of style, do they? DGRO recognizes the importance of consumer staples in any market environment. Companies such as Procter & Gamble, known for daily essentials, contribute a significant portion to the ETF’s allocation.

Industrials: The industrials sector, which comprises of manufacturers, construction companies, and other industrial giants, helps support the backbone of the economy. DGRO includes notable firms like 3M and Caterpillar Inc., acknowledging their potential for strong dividend performance.

Real Estate: A diversified portfolio wouldn’t be complete without a nice little picket-fence gated allocation of real estate, would it? DGRO’s modest real estate allocation ensures exposure to this classic investment area, providing an additional layer of diversification.

In conclusion, DGRO’s portfolio composition provides a diverse exposure to various sectors and market-leading companies. With its focus on dividend growth and well-rounded allocations, the ETF offers investors the opportunity to achieve both capital growth and income potential with a touch of wit and charm.

Fees and Expenses

Ah, the delightful world of fees and expenses, where investors navigate through a sea of numbers in search of the best deal. Fear not, dear reader, as we wade into the waters of the iShares Core Dividend Growth ETF (DGRO) together.

First and foremost, let us address the mysterious figure known as the expense ratio. In this case, DGRO boasts a rather low expense ratio of 0.08%. To put that in perspective for those who may not have their calculators handy, an investor putting $10,000 into this magnificent ETF would be charged a mere $8 in fees over the course of a year. Quite the bargain, if you ask me!

Now that we’ve addressed the elephant in the room, let’s take a moment to appreciate DGRO’s net assets. Clocking in at a cool 8.25 billion dollars, this ETF finds itself among the ranks of the medium to large category in terms of total holdings. While size isn’t everything, it does convey a sense of stability and heft that can be comforting to investors.

Though sarcasm and wit have been our trusted companions thus far, it’s important to remember the gravity of the subject at hand.

As investors seek to secure their financial futures, being knowledgeable about the various aspects of an ETF, especially the fees and expenses, is crucial. With that said, DGRO’s combination of a low expense ratio and sizable assets make it a compelling option for those on the hunt for a dividend-focused investment.

Dividends and Yield

When it comes to dividend ETFs, the iShares Core Dividend Growth ETF (DGRO) proves to be a worthy contender. Let’s take a look at its dividends and yield, shall we?

Dividend Yield

Ah, dividend yield—music to the ears of income-seeking investors. The DGRO ETF offers a modest yet tantalizing dividend yield of 2.38%. While it may not have you dancing in the streets, it is still a reasonable figure compared to other dividend growth ETFs out there.

Over the past year, this adventurous ETF has paid $1.23 per share, ensuring that shareholders received a steady flow of income every three months.

But, as one might say, “There’s no rest for the weary,” and the last ex-dividend date was Jun 7, 2023—timely, considering our current date of Mon Jul 17, 2023.

Distribution Yield

Now, let’s dive into the world of DGRO’s distribution yield. Distribution yield considers the income generated from a fund’s investments, and for our fun-loving DGRO ETF, this figure joins hands with the dividend yield, capturing the essence of the total payout to shareholders.

While we don’t have a precise distribution yield figure at our fingertips, we can admire DGRO’s payout ratio of 36.01% and a dividend growth rate of 17.53%. These percentages indicate a relatively stable and growing distribution of income, proving that DGRO knows how to balance its checkbook when it comes to delighting its investors.

So, there you have it—the DGRO ETF in all its dividends and yield glory, both charmingly sarcastic and astoundingly informative, yet always accurate and neutral. Happy investing, dear reader!

Ratings and Reviews

Ah, the splendid world of ETFs, where one can find a treasure trove of opportunities such as the iShares Core Dividend Growth ETF (DGRO). Alas, dear reader, worry not! We shall delve into the ratings and reviews of this intriguing financial vehicle, emphasizing the analysis of Morningstar, a trusty source of ETF reviews.

As for its ratings, Morningstar offers an interesting viewpoint on the parent organization of DGRO. Through its Parent Pillar rating, it gauges how well the objectives of the parent organization align with investors’ interests. In the case of DGRO, it seems that the parent organization does indeed strive to appease investors with its tactics, like a well-meaning waiter serving a dish of delicious dividends.

But wait, there’s more! In the vast realm of Reddit, users share their wisdom on the subject. One satisfied investor sings praises for DGRO, having held the ETF for 4 years. Its strongest competitor? VIG, but DGRO emerges triumphant with a 5-year dividend growth screening that offers greater flexibility and potential.

However, let us not gloss over its rivals too hastily. In the battle of DGRO vs. SCHD, it appears that some investors lean towards SCHD for its higher dividend yield, which can provide a buffer during less-than-stellar market conditions.

But alas, finance is no stranger to the concept that beauty (and value) lie in the eye of the beholder.

Witty banter aside, it’s clear that DGRO garners positive attention as a dividend growth ETF. Through this humble exploration of ratings and reviews, one thing is certain: the quest for knowledge and discernment in the ETF marketplace goes on. Or, in more poetic terms: “Wheresoever you go, go with all your dividends.”

ETF Comparisons

In the world of dividend growth ETFs, the iShares Core Dividend Growth ETF (DGRO) is not the only game in town. To help discerning investors make informed decisions, this section will compare DGRO against its prominent peers, Vanguard Dividend Appreciation ETF (VIG) and other relevant funds in the space.

DGRO vs. VIG

DGRO and VIG both seek to provide investors with exposure to U.S. dividend-growth stocks. While they share similar objectives, a few subtle differences set them apart.

First, DGRO targets companies with at least a modest five-year dividend growth history, whereas VIG chooses companies with a more impressive ten-year record. This distinction might cause you to think VIG would offer higher dividend growth rates, but we’re not here to make blatant assumptions.

Second, the expense ratios for these two funds are neck and neck, with DGRO’s being 0.08% and VIG’s at 0.06%. One can practically hear DGRO sobbing over this almost insignificant difference.

Moving on to the fund sizes, DGRO boasts an AUM of $6.33 billion, while VIG’s AUM surpasses it with a cool, uh, $53.47 billion. Does size matter? That’s a subjective question we’re not here to discuss, but it can impact liquidity and trading costs.

DGRO vs. Other Dividend ETFs

Allow us to introduce Schwab U.S. Dividend Equity ETF (SCHD) and WisdomTree U.S. Quality Dividend Growth ETF (DGRW), two other prestigious members of the dividend-growth ETF club.

When it comes to expense ratios, DGRO’s 0.08% is fairly competitive: SCHD has a ratio of 0.06% while DGRW sits smugly with its own 0.28%. If only DGRW could use that extra expense to purchase a sense of humility.

As for assets under management, DGRO’s $6.33 billion sits between SCHD’s $21.88 billion and DGRW’s $3.22 billion. All these funds are doing quite well for themselves in the grand NYSEArca ballroom dance.

Dividend growth rates offer another interesting point of comparison. DGRW sports an impressive 12.27% long-term annualized dividend growth rate. As for DGRO, well, there are some mysteries in this world that must remain unsolved—just like how SCHD manages to sit pretty with a higher dividend yield than DGRO while still being in the less-than-10-year club (that’s a youthful joke!).

To summarize, DGRO is just one of several dividend ETFs that allow income-seeking investors to tap into the lush gardens of U.S. dividend growth.

This comparison merely scratches the surface of a complex and nuanced universe of funds. Should you investigate further? That decision, dear reader, is up to you.

Risk Factors

In the world of investments, they say there’s no pleasure without pain. Well, the same applies to the iShares Core Dividend Growth ETF (DGRO), which, like any other investment, comes with its share of risks. Let’s dive into the choppy waters of risk factors, shall we?

The first risk that comes to mind for DGRO investors is market risk. Just like any other ETF, DGRO is subject to the fluctuations of the stock market, which means, dear reader, that the value of its net assets may go up or down (they call that volatility, you know).

Now, add to that the oh-so-real possibilities of economic downturns and the unpredictable nature of politics, and you’ve got yourself a rollercoaster ride.

Another area to keep an eye on is the P/E (price-to-earnings) ratio, which, while not a risk in and of itself, could indicate potential overvaluation or undervaluation of the ETF’s holdings.

A high P/E ratio may imply future growth expectations, but also could make the ETF more susceptible to declines if earnings growth doesn’t live up to its promise. On the other hand, a low P/E ratio can suggest undervaluation or a lack of confidence in the ETF’s holdings.

Here’s a dash of dry humor for you. Concentration risk. Funny, right? This delightful risk occurs when an ETF’s holdings are significantly focused on a specific sector, industry, or geography.

In DGRO’s case, this concentration risk might result from its strategy of focusing on dividend growth companies, which could end up being too heavily weighted in a particular sector or region. But don’t worry, it’s not as terrible as it sounds, especially considering DGRO’s diverse portfolio that spans various sectors and regions.

Last, but certainly not least, is the often overlooked but ever-present risk of fees. While DGRO boasts a lower expense ratio of 0.08% compared to certain other funds, investors should still be mindful of the fees that could cut into their returns. Sometimes it feels like you’re being nickeled and dimed, but hey, that’s the cost of investing in a professionally managed fund, right?

Final Thoughts

Ah, the mysterious world of ETFs – how we adore thee. In the realm of investment vehicles, the iShares Core Dividend Growth ETF (DGRO) stands tall with its fine balance of growth and dividend yield. This magnificent creation boasts a rather appealing 5-year dividend growth rate above 10%, a testament to its sturdy foundation.

Now, let’s take a step back and admire DGRO’s shining armor: a low expense ratio of 0.08%. It’s quite the armor, isn’t it?

A report from Seeking Alpha dives deeper into the ETF’s composition and performance, highlighting its consistency in churning out growing dividends like clockwork. In a world where certainty is rare, DGRO offers solace for investors seeking refuge in consistently blossoming dividends.

Witty banter aside, we find ourselves amidst turbulent economic times, what with inflations and all those wonderful things. But fear not. For in this storm, DGRO remains a beacon of stability, offering investors a semblance of protection against rising rates, thanks to its focus on dividend growth.

But let us not forget that with great power comes great responsibility, and investing in DGRO should undertake thorough research. You can find crucial information from the FIS to the NASDAQ, as it’s essential to weigh the risks before venturing into any investment, even one as seductively promising as DGRO.

In a world where clarity seems scarce, DGRO offers a glimpse of hope. For investors seeking consistent dividends, a healthy balance of risk and reward, and exposure to diverse companies, the iShares Core Dividend Growth ETF remains an appetizing selection.

And with that, we leave you to ponder the possibilities, standing on the precipice of knowledge, one toe dipped in the waters of wisdom, ready to dive in with confidence and conviction.

Before you go…

Frequently Asked Questions: DGRO ETF Review

Is DGRO A Suitable Long-Term Investment?

DGRO is considered a suitable option for those seeking long-term sustainable dividend growth and regular payouts. Its strategy of excluding companies whose dividends exceed 75% of earnings adds to its attractiveness in terms of sustainability.

How Does DGRO Compare To SCHD?

DGRO and SCHD are both dividend-focused equity ETFs, but they differ in their investment strategy and holding criteria. DGRO focuses on companies that have a history of at least five consecutive years of dividend growth and a payout ratio of less than 75%u003csupu003eu003ca href=u0022about:blank#user-content-fn-1%5Eu0022u003e1u003c/au003eu003c/supu003e, while SCHD selects stocks based on dividend yield, cash flow to total debt, return on equity, and five-year dividend.

What Are The Top Holdings In DGRO?

The top holdings in DGRO can change over time, but as of October 2021, some of the prominent constituents included Apple, Microsoft, JPMorgan Chase, Johnson u0026amp; Johnson, and Visa.

Does DGRO Distribute Dividends Regularly?

Yes, DGRO distributes dividends regularly. As of July 2023, its dividend yield is 2.32%.

What Is DGRO’s Total AUM?

DGRO’s total assets under management (AUM) can fluctuate based on market conditions and investor activity. As of October 2021, its AUM was approximately $22 billion.

Is The Current Valuation Of DGRO Overvalued?

It is challenging to definitively determine whether DGRO is overvalued or not, as the valuation depends on various factors, including the performance of its underlying holdings and the overall market sentiment. Investors should conduct due diligence before making an investment decision.

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