“Without continual growth and progress, such words as improvement, achievement and success have no meaning.”
— Benjamin Franklin
For investors who want equity exposure without relying purely on price appreciation, the iShares Core Dividend Growth ETF (DGRO) offers a deliberately structured middle ground.
Rather than chasing the highest-yielding stocks, the fund targets U.S. companies with a proven record of consistently increasing their dividends, aiming to capture both income today and growth in that income over time. This focus naturally tilts the portfolio toward established, profitable businesses with durable cash flows.
DGRO doesn’t simply screen for dividend growth — it also applies quality filters, such as sustainable payout ratios and positive earnings expectations, to avoid companies whose dividends may be at risk. The result is a portfolio of diversified holdings designed to emphasize financial strength and long-term stability rather than short-term yield spikes.
DGRO is built with compounding in mind. Its underlying strategy favors companies capable of raising dividends year after year, which can steadily increase an investor’s income stream while also supporting total return through reinvestment. Over long horizons, this combination of moderate yield and consistent growth has historically been a powerful driver of wealth accumulation, particularly compared to strategies that prioritize yield alone.
The top 10 holdings make up 26.37% of the portfolio’s total assets. The fund has net assets of $37.55 billion and a yield of 2.10%. It has an expense ratio of 0.08%. DGRO climbed 0.54% in the past week, dipped 1.06% in the last month, but rose 1.26% for the past three months, 2.12% for the year-to-date and 28.88% for the past year.
The top 10 holdings account for 26.37% of the portfolio’s total assets and include Exxon Mobile Corporation (NYSE: XOM), 3.34%, JPMorgan Chase and Co. (NYSE: JPM), 3.00%, Johnson and Johnson Company (NYSE: JNJ), 2.94%, Apple Inc. (NASDAQ: AAPL) 2.88%, Microsoft (NASDAQ: MSFT), 2.77%, AbbVie Inc. (NYSE: ABBV), 2.72%, Broadcom Inc. (NASDAQ: AVGO), 2.72%, Proctor & Gamble Inc. (NYSE: PG), 2.13%, Philip Morris International Inc. (NYSE: PM), 2.04% and Merck & Co., Inc. (NYSE: MRK), 2.02%.
Chart courtesy of Stockcharts.com.
DGRO is an ETF delivered in a low-cost, highly accessible package. With an expense ratio of 0.08% and broad sector diversification, DGRO is often used as a core portfolio holding. It is a single position that provides exposure to high-quality U.S. equities, a growing income stream and a smoother risk profile than more aggressive growth funds.
However, don’t just take my word for it. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolios.
Of course, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
