DGRO’s dividend-dollar weighting allocates 11% to tech giants, driving a 249% ten-year return and dividend growth from $0.93 to $1.48 since 2019.
The iShares Core Dividend Growth ETF (DGRO) has delivered a 249% return over the past decade, surpassing the 226% gain of rival SCHD while nearly matching the S&P 500. Its dividend payouts grew from $0.93 to $1.48 since 2019, fueled by a methodology that excludes high-yield stocks and weights holdings by dividend dollars paid.
DGRO’s rules-based approach funnels 11% of its portfolio into semiconductor and AI-linked firms like Broadcom and Apple. By prioritizing dividend dollars over yield percentages, the fund gains exposure to mega-cap tech, contrasting with its reputation as a conservative dividend play.
The ETF’s strategy avoids the highest yielders, treating extreme payouts as a risk signal. Instead, it targets companies with consistent dividend growth, resulting in a portfolio that mirrors broader market trends while maintaining income stability.