Quick Read – DGRO requires 5+ consecutive years of dividend growth from roughly 400 holdings, filtering out dividend stretchers and charging just 0.08% in annual fees. – JNJ extends its dividend streak to 64 consecutive years while PG hits 70, with both holdings backed by…
llions in annual cash flow. – Microsoft’s 54x interest coverage and Apple’s $100 billion buyback authorization make their dividends the fund’s hidden stability anchors, not its income drivers. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and iShares Core Dividend Growth ETF didn’t make the cut. Grab the names FREE today
The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) was built for investors who want a paycheck that gets bigger every year, not a yield chase. DGRO tracks the Morningstar US Dividend Growth Index, screening for companies with at least five consecutive years of dividend growth and payout ratios under 75%. The fund pays a roughly 2.2% to 2.5% trailing yield at an ultra-low 0.08% expense ratio, and DGRO’s top holdings tell the real story about whether that income is durable.
The short answer: the distribution is among the safest you can find in an equity ETF. How DGRO Manufactures Its Income DGRO’s distribution comes straight from dividends collected from roughly 400 underlying U.S. companies, passed through quarterly. Because the index requires five years of consecutive dividend growth and caps the payout ratio at 75%, the fund mechanically excludes companies stretching to pay shareholders.