Average Daily Volume
2.1M
Fund Overview
The iShares Core Dividend Growth ETF (DGRO) is designed to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends. The fund seeks to provide investors with exposure to high-quality companies that have demonstrated the ability to increase dividends over time, which can be an attractive feature for income-focused investors. DGRO is part of iShares' Core series, which aims to offer low-cost, broad market exposure for long-term investors. The ETF is well-diversified across sectors and market capitalizations, providing a balanced approach to dividend growth investing.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
Yes
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.18 %
- Currency Hedged
-
No
- Portfolio Turnover
-
25 %
- Dividend Date
-
Why Invest in the DGRO ETF?
Potential Benefits
- Provides exposure to high-quality U.S. companies with a history of consistent dividend growth, which can be a sign of financial health and stability.
- Offers a relatively low expense ratio compared to many actively managed dividend-focused funds, making it cost-effective for long-term investors.
- Diversified across sectors and market capitalizations, reducing concentration risk while maintaining a focus on dividend growth.
- Dividend growth strategies have historically provided a combination of income and potential capital appreciation, appealing to both income and growth investors.
- Part of iShares' Core series, which is designed for long-term investors seeking low-cost, broad market exposure.
Potential Risks
- Dividend-paying stocks may underperform non-dividend-paying stocks during strong bull markets, as growth-oriented companies may reinvest profits rather than pay dividends.
- Sector concentration risk, as dividend growers are often found in sectors like utilities, consumer staples, and financials, which may face unique challenges.
- Interest rate sensitivity: Dividend stocks can be sensitive to rising interest rates, as higher yields on fixed-income alternatives may reduce their appeal.
- Dividend payments are not guaranteed and can be cut or suspended by companies during economic downturns or financial distress.
- Market risk: Like all equity investments, DGRO is subject to market volatility and potential loss of principal.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+3.5%
|
+2.9%
|
-4.6%
|
+5.0%
|
+1.7%
|
+1.6%
|
+2.9%
|
+1.3%
|
-4.1%
|
+0.5%
|
-
|
-
|
| 2025 |
+3.5%
|
+1.0%
|
-3.2%
|
-2.7%
|
+3.3%
|
+3.5%
|
+1.1%
|
+3.5%
|
+2.3%
|
0.0%
|
+2.7%
|
-0.1%
|
| 2024 |
+1.3%
|
+3.1%
|
+3.9%
|
-3.6%
|
+2.9%
|
+0.5%
|
+4.7%
|
+3.1%
|
+1.5%
|
-1.2%
|
+4.8%
|
-5.0%
|
| 2023 |
+2.6%
|
-2.7%
|
+0.8%
|
+1.8%
|
-3.5%
|
+5.5%
|
+3.4%
|
-2.4%
|
-4.0%
|
-2.6%
|
+7.1%
|
+4.9%
|
| 2022 |
-3.2%
|
-2.5%
|
+2.4%
|
-5.3%
|
+1.6%
|
-6.8%
|
+6.2%
|
-3.5%
|
-8.2%
|
+10.2%
|
+6.8%
|
-3.8%
|
| 2021 |
-1.6%
|
+2.7%
|
+7.1%
|
+3.4%
|
+1.8%
|
-0.4%
|
+2.6%
|
+2.2%
|
-4.5%
|
+5.8%
|
-1.4%
|
+6.7%
|
| 2020 |
-1.5%
|
-9.1%
|
-12.8%
|
+11.6%
|
+3.7%
|
+0.4%
|
+4.3%
|
+4.8%
|
-2.6%
|
-2.1%
|
+12.1%
|
+3.2%
|
| 2019 |
+6.2%
|
+3.8%
|
+1.1%
|
+3.8%
|
-5.8%
|
+7.0%
|
+1.4%
|
-1.4%
|
+3.1%
|
+2.0%
|
+3.4%
|
+2.5%
|
| 2018 |
+4.8%
|
-3.9%
|
-2.7%
|
-0.1%
|
+1.6%
|
+0.1%
|
+5.1%
|
+2.8%
|
+0.6%
|
-5.4%
|
+3.7%
|
-8.2%
|
| 2017 |
+1.1%
|
+4.8%
|
0.0%
|
+1.0%
|
+1.1%
|
+1.3%
|
+1.1%
|
+0.4%
|
+2.6%
|
+2.2%
|
+4.2%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
3.1 % |
|
JPM
|
JPMORGAN CHASE & CO |
3.0 % |
|
XOM
|
EXXON MOBIL CORP |
3.0 % |
|
JNJ
|
JOHNSON & JOHNSON |
2.9 % |
|
ABBV
|
ABBVIE INC |
2.5 % |
|
AAPL
|
APPLE INC |
2.5 % |
|
UNH
|
UNITEDHEALTH GROUP INC |
2.3 % |
|
PG
|
PROCTER & GAMBLE CO |
2.3 % |
|
AVGO
|
BROADCOM INC |
2.3 % |
|
CME
|
CME GROUP INC CLASS A |
2.2 % |
Top 10 holdings shown, out of 409 total holdings.
Related ETFs: DGRO vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
DGRO seeks to track the Morningstar US Dividend Growth Index, which screens for companies with a history of consistently growing dividends. The index methodology excludes the top 10% highest-yielding stocks to avoid potential dividend traps (companies with unsustainable high yields). Remaining stocks are weighted by market capitalization, with individual security weights capped at 5% to maintain diversification. The fund primarily holds common stocks of U.S. companies across all market capitalizations, with a tilt toward large-cap stocks. The index is reconstituted annually and rebalanced quarterly to maintain its target allocations and dividend growth criteria.
Frequently Asked Questions
What is the minimum dividend growth history required for stocks in DGRO?
DGRO's underlying index requires companies to have increased dividends for at least five consecutive years, though some constituents have much longer histories.
How often does DGRO pay dividends?
DGRO pays dividends quarterly, typically in March, June, September, and December, though the exact dates may vary slightly each year.
Does DGRO include REITs or other pass-through entities?
No, DGRO focuses on traditional C-corporations and excludes REITs and other pass-through entities that have different tax and dividend characteristics.
How does DGRO's expense ratio compare to similar dividend growth ETFs?
At 0.08%, DGRO's expense ratio is highly competitive, slightly lower than VIG's 0.06% and significantly below many actively managed dividend strategies.
Can DGRO be used as a complete income solution for retirees?
While DGRO can be part of an income strategy, its current yield is typically modest (often 2-3%), so it may need to be combined with other income sources for retirees with substantial income needs.
Industry Overview
The iShares Core Dividend Growth ETF (DGRO) focuses on U.S. companies with a history of consistently growing dividends, a strategy that appeals to investors seeking both income and potential capital appreciation. Dividend growth investing has gained popularity as investors look for reliable income streams in a low-yield environment, particularly among retirees and those nearing retirement. The financials, healthcare, and consumer staples sectors are well-represented in dividend growth strategies, as these industries often have stable cash flows that support consistent dividend increases. DGRO offers a diversified approach to this theme, providing exposure across market caps and sectors while maintaining a focus on companies with sustainable dividend policies.
Alternative Comparison
Compared to VIG (Vanguard Dividend Appreciation ETF), DGRO offers a slightly broader universe of dividend growers by including stocks with shorter dividend growth histories (5+ years versus 10+ years for VIG). This gives DGRO exposure to some younger companies that may have stronger growth potential. Against SCHD (Schwab US Dividend Equity ETF), DGRO has a less stringent yield requirement, resulting in a portfolio with somewhat lower current yield but potentially greater dividend growth prospects. Unlike NOBL (S&P 500 Dividend Aristocrats ETF) which focuses exclusively on S&P 500 constituents with 25+ years of dividend growth, DGRO casts a wider net across market caps while maintaining quality screens.
Issuer Overview
DGRO is issued by iShares, a leading global provider of exchange-traded funds (ETFs) and part of BlackRock, the world's largest asset manager. iShares offers a comprehensive range of ETFs across asset classes and investment strategies, with particular strength in index-based products. The company is known for its low-cost Core series of ETFs, which includes DGRO and is designed to serve as foundational holdings for long-term investors. BlackRock's scale and expertise in index construction and portfolio management contribute to the efficient operation of its ETFs.
Conclusion
The iShares Core Dividend Growth ETF (DGRO) offers investors a cost-effective way to access U.S. companies with a demonstrated commitment to growing their dividends. Its balanced approach across sectors and market capitalizations, combined with rigorous dividend growth screens, makes it a compelling option for investors seeking both income and potential capital appreciation. While dividend growth strategies may lag during certain market conditions, they have historically provided attractive risk-adjusted returns over full market cycles. As part of the iShares Core series, DGRO is particularly well-suited as a long-term holding in diversified portfolios.
Boost Your Returns with SectorSurfer
Award-winning investment strategy automation