ETF Talk: DGRO – Quality Growth Investments Always Prevail

“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.

Exclusive Three Defense Investments with Potential to Outperform

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.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.