September historically crushes stock portfolios, and with hedge funds building the largest Nasdaq short position ever recorded, retirees depending on a bull market for income face a shrinking window to reposition into safety.
Retirees looking for durable income in August 2026 face a familiar tension. The 10-year Treasury yields 4.61%, the Fed funds upper bound sits at 3.75% and has held there since Dec.
Your bank just sent you the letter. That 12-month CD you locked in last year has matured, and the renewal offer looks suspiciously close to the 1.68% national average the FDIC says banks are quietly paying right now.
A smart beta exchange traded fund, the iShares Core Dividend Growth ETF (DGRO) debuted on 06/10/2014, and offers broad exposure to the Style Box - Large Cap Value category of the market.
As investors search for reliable sources of passive income, many are naturally drawn to the highest-yielding dividend-paying funds.
I view the iShares Core Dividend Growth ETF as a compelling buy amid potential capital rotation out of semiconductors. DGRO's portfolio construction prioritizes companies with strong free cash flows, consistent dividend growth, and positive earnings forecasts, filtering out value traps. The ETF has a low starting yield (1.9%) but boasts an 8.93% 10-year dividend CAGR and 11 consecutive years of dividend growth.
The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) trades near $77, up roughly 11% year to date year-to-date.
Chasing yield is the most expensive habit in dividend investing, and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) exists precisely because a lot of investors keep doing it anyway.
The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) and the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) look like siblings on any fund screener: both hunt large-cap U.S.
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 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.
Retirees heading into the back half of 2026 face a familiar puzzle: how to pull steady income from a stock portfolio without sacrificing growth that protects against inflation.
Launched on 06/10/2014, the iShares Core Dividend Growth ETF (DGRO) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.