iShares Core Dividend Growth ETF

DGRO

Market cap $35.5B

If it's strong income and growth you're after, you may want to consider dividend-paying exchange-traded funds. We can look at high-yield dividend funds, which target companies with above-average yields in hot sectors such as consumer staples and telecommunications.

DGRO is a well-diversified large-cap value fund comprised of almost 400 U.S. securities on 5+ year dividend growth streaks. Its expense ratio is 0.08% and its trailing yield is 2.02%. DGRO has increased dividends for 10 years, one of only five in its category to do so. Today, I'll compare it with the other four: VTV, VYM, VIG, and SCHD. This article uses fundamental analysis to predict whether DGRO's dividend growth streak will continue and whether any of those four ETFs are potentially better long-term.

Dividend ETFs ensure retirement portfolios balance income, growth, and stability. Income-generating funds suit all ages, offering reliable payouts.

DGRO's multi-factor strategy that looks at dividend growth, yield and quality is ideal for retirement investors. Its portfolio is tilted heavier towards value, but it has consistently outperformed its peer group over the next decade. Valuation metrics show that DGRO's portfolio is about 25% cheaper than that of the S&P 500.

It doesn't hurt to have a source of passive income in your retirement supported by your investment portfolio.

Income is lagging growth this year. But companies like Seagate, Newmont, Tapestry and CVS offer the best of both worlds: solid dividend yields and strong stock performance.

We aren't even through September, and the S&P 500 (^GSPC 0.47%) has already produced an 11.2% year-to-date total return (dividends included) at the time of this writing. That puts the index on track for its third consecutive year of higher-than-historical gains.

The iShares Core Dividend Growth ETF (DGRO) was launched on 06/10/2014, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.

DGRO is a better dividend growth ETF than DIVO for investors who don't need immediate high income, due to its lower fees and stronger total returns. DGRO's index construction prioritizes dividend growth, profitability, and payout sustainability, resulting in a high-quality, diversified portfolio. DGRO delivers faster dividend growth and better protects income during market downturns compared to DIVO. This could give DGRO a better yield on cost for investors willing to hold ~15 years.

Given heightened economic uncertainty, I am leaning more defensive and sticking with my dividend growth investing strategy, emphasizing diversification and income stability. The frozen housing market, soft labor conditions, and stagnating consumer spending signal potential economic weakness, despite optimism in select sectors like tech. My ETF portfolio review shows shifting leadership, with midstream energy outperforming previously, but preferreds and tech-focused ETFs now leading as trends evolve.