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DGRO Wins Out Over VIG: Better Momentum And A Smoother Ri...
LA Capital · 2026-06-22 · via All Articles on Seeking Alpha

Summary

  • The iShares Core Dividend Growth ETF is rated a Buy for its superior price stability and recent momentum versus the Vanguard Dividend Appreciation ETF, which is rated Hold.
  • DGRO’s 5-year dividend growth entry rule and 75% payout ratio cap enable the inclusion of cash-rich, newer dividend growers, better suited for the current high-rate environment.
  • DGRO’s dividend-dollar weighting and more lenient yield exclusion result in higher yield (1.94% vs. VIG’s 1.47%) and greater utility sector allocation, without materially increasing risk.
  • Holding both DGRO and VIG offers negligible diversification; DGRO’s recent outperformance and resilient dividend growth make it the preferred choice in uncertain markets.
Love old senior couple looking at growth stack coins graph chart with red ladder.

Pla2na/iStock via Getty Images

Navigating Uncertainty By Focusing on Quality Over Yield

The market has recently been experiencing a period of enhanced volatility due to a significant degree of uncertainty related to geopolitical events, oil supply constraints, the direction of monetary

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I cannot purchase either DGRO or VIG because they are not available in my jurisdiction.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.