iShares Core Dividend Growth ETF

DGRO

Market cap $37B

The iShares Core Dividend Growth ETF (NYSEARCA:DGRO ) and Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM ) are two highly popular dividend ETFs that income investors have a hard time choosing between.

Investors, especially retirees, seek a lifetime of passive income to get them through their Golden Years.

A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.

Dividend investing is increasingly vital amid higher rates and inflation, offering passive income and wealth compounding for retirement. Anchoring a portfolio with quality dividend ETFs like SCHD, FDVV, or CGDV can provide reliable income and potential outperformance. Combining high dividend growers (e.g., V, MA, WM) with stable high-yielders (e.g., VZ, O, ADC, STWD) balances growth and income.

ETFs that consistently deliver years of steady dividend growth are few and far between. The simple, yet effective strategy used by the iShares Core Dividend Growth ETF is working.

The iShares Core Dividend Growth ETF ( NYSEARCA:DGRO ) delivers exactly what its name promises: dividend growth, not dividend income.

There are plenty of dividend stocks out there for equity investors looking to maximize their overall total portfolio returns.

iShares Core Dividend Growth ETF's 2025 reconstitution strengthens its dividend growth focus while trimming high-yield risks, maintaining a balanced 2.24% yield and 7.80% DPS growth across the majority of the portfolio. Despite modest 4.73% annual dividend growth in 2025, the ETF delivered 15.6% total returns with lower volatility than the S&P 500, underscoring its resilient price and dividend growth methodology. As a core holding in taxable portfolios, DGRO offers tax-efficient passive income for long-term retirement, though its conservative yield prompts diversification into higher-income options like NEOS funds.

A shockingly simple portfolio that could cover retirement expenses. Why chasing yields might be sabotaging your future. The hidden trade-offs most retirees never consider.

Some end-of-year Big Picture thoughts, including on the demographic destiny of falling population growth and the headwinds to economic growth that come with it. Why tariff-driven inflation is unlikely to generate anything more than a short-term bump followed by continued disinflation. Why the huge amount of cash on the sidelines could progressively become a tailwind to other types of financial assets, including dividend-paying stocks.