64 Years of Raises: How DGRO Finds Companies That Never Cut Dividends

1 hour ago 1

John Seetoo

Mon, June 15, 2026 astatine 11:56 AM CDT 4 min read

Quick Read

DGRO requires 5+ consecutive years of dividend maturation from astir 400 holdings, filtering retired dividend stretchers and charging conscionable 0.08% successful yearly fees.
JNJ extends its dividend streak to 64 consecutive years portion PG hits 70, with some holdings backed by billions successful yearly currency flow.
Microsoft's 54x involvement sum and Apple's $100 cardinal buyback authorization marque their dividends the fund's hidden stableness anchors, not its income drivers.
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The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) was built for investors who privation a paycheck that gets bigger each year, not a output chase. DGRO tracks the Morningstar US Dividend Growth Index, screening for companies with astatine slightest 5 consecutive years of dividend maturation and payout ratios nether 75%. The money pays a astir 2.2% to 2.5% trailing output astatine an ultra-low 0.08% disbursal ratio, and DGRO's apical holdings archer the existent communicative astir whether that income is durable. The abbreviated answer: the organisation is among the safest you tin find successful an equity ETF.

Money conception with man's hands placing wealth successful a increasing slope account. Business plan. Investment successful stocks, dividends, currency speech and interest.

How DGRO Manufactures Its Income

DGRO's organisation comes consecutive from dividends collected from astir 400 underlying U.S. companies, passed done quarterly. Because the scale requires 5 years of consecutive dividend maturation and caps the payout ratio astatine 75%, the money mechanically excludes companies stretching to wage shareholders. That methodology is wherefore the apical of the portfolio reads similar a who's who of currency travel machines: Johnson & Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), AbbVie (NYSE:ABBV), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and JPMorgan Chase (NYSE:JPM).

The Dividend Kings Anchoring the Fund

JNJ conscionable raised its payout to $1.34 per quarter, extending its streak to 64 consecutive years of dividend growth. Q1 gross roseate 9.9% to $24.06 cardinal and absorption raised full-year adjusted EPS guidance to $11.45 to $11.65. STELARA biosimilar erosion and a $330 cardinal litigation complaint dented quarterly escaped currency flow, but DARZALEX, TREMFYA, and CARVYKTI are increasing accelerated capable to support coverage.

P&G is connected its 70th consecutive yearly increase, paying $1.0885 a 4th and yielding 3.0%. Operating currency travel was $4.05 cardinal past 4th and absorption plans astir $10 cardinal successful dividends and $5 cardinal successful buybacks this fiscal year. Tariff costs adjacent $400 cardinal are pushing EPS toward the little extremity of guidance, but the dividend is not the constraint.

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