I recently posted a lengthy article for Marketplace subscribers that tried to develop the "ultimate" dividend growth portfolio. I started with nearly two dozen different ETFs that use a dividend growth strategy in some form and narrowed it down to develop a portfolio that offered low fees, an above-average yield and superior risk-adjusted returns using companies that have delivered decades-long histories of consistent dividend growth.
One of the funds that was considered in that process was the iShares Core Dividend Growth ETF (NYSEARCA:DGRO). When thinking about traditional dividend growth ETFs, many may think first of funds that require 20+ consecutive years of continuously rising dividends to qualify, such as the SPDR Dividend ETF (NYSEARCA:SDY) or the ProShares S&P 500 Dividend Aristocrats ETF (BATS:NOBL). DGRO, on the surface, only requires a five-year history to make its cut, but its additional focus on healthy fundamentals and elimination of names in highly interest rate-sensitive sectors make it a potentially better choice than any of the other funds in this category. And it's got the track record to back it up.
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