What is the dividend yield of DGRO?

The dividend yield of DGRO is approximately 2.2%.

What criteria does DGRO use to select stocks?

DGRO requires companies to have at least five consecutive years of dividend growth and a payout ratio under 75%.

Does DGRO guarantee no dividend cuts?

No, DGRO does not guarantee no dividend cuts, but its selective criteria aim to minimize that risk.

DGRO ETF: Investing in 64 Years of Uninterrupted Dividend Growth

The DGRO ETF tracks the Morningstar US Dividend Growth Index, selecting companies with at least five consecutive years of dividend growth and payout ratios below 75%. It offers a 2.2% yield with holdings like MSFT and AAPL.

June 15, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

dividend yield

2.2%

minimum consecutive years

max payout ratio

75%

The iShares Core Dividend Growth ETF (DGRO) is designed for investors seeking a growing income stream rather than a high yield. It tracks the Morningstar US Dividend Growth Index, screening for companies with at least five consecutive years of dividend growth and payout ratios under 75%.

What Makes DGRO Unique

Dividend Yield: Approximately 2.2%.
Strict Criteria: Requires 5+ consecutive years of dividend growth.
Low Payout Ratio: Below 75% to ensure sustainability.
Sector Diversification: Includes technology (MSFT, AAPL), financials (JPM), healthcare (JNJ, ABBV), and consumer staples (PG).

How the Fund Works

DGRO invests in companies with a proven track record of increasing dividends year after year. This approach reduces the risk of dividend cuts, as companies with low payout ratios have more room to reinvest earnings for growth.

What This Means for Investors

DGRO is suitable for long-term investors seeking a growing and stable income. While it does not guarantee dividend stability, its selective criteria aim to minimize the risk of reductions.

Frequently Asked Questions

The iShares Core Dividend Growth ETF (DGRO) tracks the Morningstar US Dividend Growth Index, selecting companies with 5+ consecutive years of dividend growth and payout ratios below 75%.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.