NYSEARCA:DGRO Price, Yield And Core Profile
NYSEARCA:DGRO trades around $70.18, flat on the day, just under its $70.60 52-week high and well above the $54.10 52-week low. The ETF delivers an indicated annual dividend of about $1.45 per share, implying a forward yield near 2.07%, backed by roughly $36.27B in assets, an expense ratio of 0.08% and average daily volume near 291K shares. In 2025, DGRO ETF generated about 15.6% total return, only slightly behind the S&P 500 at 17.5%, but did it with lower volatility and a smoother equity curve, which matters for a core dividend-growth allocation built to compound rather than chase short-term pops.
DGRO ETF Dividend Growth Engine And Portfolio Structure
DGRO ETF now holds about 406 stocks, down from 435 in 2023, 415 in 2024 and 410 going into 2025, showing a deliberate tightening of quality screens rather than style drift. Roughly 66% of assets are concentrated in the top 50 holdings, which collectively carry a weighted average current yield of 2.24% and dividend-per-share growth of 7.80%. The top 10 names, about 26% of the fund, are large-cap compounders. Apple sits near 3.29% weight, Microsoft around 2.74%, and Broadcom close to 2.54%, alongside other blue chips in financials, health care and industrials. Inside that, a narrow sleeve of the fastest dividend growers—roughly 6.7% of weight—shows an average yield of 1.70% but 23% DPS growth, driven by positions like Goldman Sachs with about 33.33% dividend growth and JPMorgan around 20%, which is where the future yield-on-cost expansion comes from.
2025 NYSEARCA:DGRO Reconstitution, Adds, Cuts And Growth Focus
The 2025 reconstitution of NYSEARCA:DGRO reinforced its tilt toward sustainable dividend growth and away from yield traps. The rule set requires at least 5 consecutive years of dividend increases and a payout ratio no higher than 75% of earnings, which already filters out fragile payers. In this year’s rebalance, 44 new holdings were added, about 7% of fund weight, with average yield near 2.59% and dividend growth around 8.51%. Names such as Philip Morris and Wells Fargo stand out as additions that still provide income but with better forward growth and more defensible balance sheets. On the other side, 43 stocks were removed, roughly 5.4% of weight, with an average yield close to 4.34% but only 5.25% dividend growth, including classic slower-moving names like US Bancorp, Target, Comcast and General Mills. The result is that DGRO ETF kept its 2.07% headline yield, but protected its growth runway, delivering an 18% increase in the Q4 dividend versus last year’s Q4 and about 4.73% annual dividend growth in 2025 despite trimming high-yield laggards.
Valuation Of DGRO ETF Versus VYM And VOO On PEGY Basis
On raw multiples, NYSEARCA:DGRO looks more expensive than high-yield peers. DGRO trades near 23.37x earnings and 3.9x book, while VYM sits around 20.4x P/E and 2.9x P/B, a discount of roughly 13% on earnings and 26% on book value. Both trade cheaper than the S&P 500 proxy VOO, which runs closer to 30.5x P/E. On a Peter Lynch-style PEGY (P/E divided by earnings growth plus dividend yield), the picture flips. VOO sits around 4.5, VYM near 3.1, while DGRO ETF lands closer to 2.6, meaning you pay less per unit of combined growth and yield. That is why, at $70.18, the DGRO price still screens as a reasonable GARP entry: not a bargain in absolute P/E terms, but comparatively cheap for the growth and dividend profile you are buying versus both a high-yield basket and a broad large-cap growth index.
Sector Tilt, Quality Metrics And Risk Profile In NYSEARCA:DGRO
The sector mix inside NYSEARCA:DGRO explains why its growth-adjusted valuation looks superior. The fund owns more technology and secular compounders than a classical value or high-yield ETF, while staying within a conservative, large-cap, profitable universe. VYM leans more heavily on banks, energy and mature value, with top weights such as Broadcom at about 8.23%, JPMorgan at 4.17%, and Exxon Mobil around 2.39%, and its holdings post an average ROE near 18.0%. DGRO holdings average ROE around 16.7%, slightly lower, but the portfolio compensates with higher dividend growth, better PEGY metrics and more exposure to tech and health care, which can sustain earnings and payout growth as nominal GDP moderates. Concentration risk is also lower: DGRO ETF caps positions around 3%, reducing single-name risk while still letting winners impact total return.
Fed Cuts, Inflation Risk And Why DGRO ETF Benefits From The Macro
The current macro setup favors dividend-growth structures like DGRO ETF over both ultra-high yield and pure momentum growth. The Federal Reserve has already delivered a 25-basis-point cut and its dot-plot implies more easing as policy drifts toward neutral. When risk-free yields stop rising, equity valuations with bond-like cash-flow streams regain support. DGRO behaves like an “equity bond”: you get a modest 2.07% current yield, but underpinned by 4–8% annual dividend growth and exposure to earnings growth in sectors that can pass some inflation through pricing. In a world of potentially sticky inflation and lower real rates, owning DGRO at $70.18 is essentially a bet that mid-single-digit dividend growth plus mid-single-digit earnings growth will compound faster than cash or slow-moving high-yield names that cannot raise payouts aggressively.
Turnover, Costs, Liquidity And Practicalities For DGRO Holders
From an implementation angle, NYSEARCA:DGRO is built to be a scalable, low-maintenance core position. The expense ratio is 0.08%, slightly above VYM’s 0.06%, but still negligible versus active funds that routinely charge 0.5–1.0%. The turnover rate near 25% is higher than VYM’s 13% and far above VOO’s 2%, reflecting the annual clean-up of weak dividend stories and the addition of stronger growers. That turnover introduces some incremental trading cost and potential tax drag, but still remains moderate and is the price of keeping the growth engine fresh. AUM of about $36.27B and 291K shares of daily volume provide ample liquidity for both retail and moderate institutional flows, with spreads typically tight enough that trading impact at or near $70 is minimal for normal position sizes.
Buy, Hold Or Sell Decision On NYSEARCA:DGRO At $70.18
At a DGRO price of $70.18, near its $70.60 52-week high, investors are paying about 23.37x earnings for a 2.07% yield and a proven ability to grow dividends in the 4–8% zone while delivering mid-teens total returns in 2025. Relative to VOO, you give up some headline growth for a better income stream and a lower PEGY; relative to VYM, you sacrifice about 30–40 basis points of current yield and a cheaper P/E to own higher dividend growth, more tech exposure and a stronger GARP profile. Given the rate backdrop, the quality of the underlying holdings, and the 2025 reconstitution tightening the dividend-growth mandate, my view on NYSEARCA:DGRO at these levels is Buy, not for yield maximization today, but as a long-term dividend-growth core that compounds income and capital more efficiently over a multi-year horizon.
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