DGRO: My Favorite Dividend Midfield Play For 2025

Summary

• With Growth CAPE over 35 and priced to perfection, iShares Core Dividend Growth ETF offers investors a resilient, high-quality portfolio heading into what, I feel, is a very frothy and overvalued 2025 market.
• DGRO's index filters only include rock-solid companies with a history of consistent dividend increases, building a perfect balance of exposure between growth and value (Dividend Midfield) that excels under any market conditions.
• Offering a starting yield almost double the S&P 500 at 2.19%, DGRO offers dividend investors an income stream that has rapidly grown every year and will continue into the future.
• As I will show below, backtests demonstrate DGRO outperforms traditional 60/40 portfolios by providing better returns, income growth, and stability, making it a strong core holding for dividend growth portfolios.

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Introduction

Capturing the right mix of assets in a dividend portfolio can be a tricky thing. With too much quality and growth, you'll never hit your income targets. Too much deep value or high yielders, and you'll miss out on

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DGRO, VIG, SCHD either through stock ownership, options, or other derivatives. 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.

For full disclosure: I own a substantial amount of DGRO in my own personal portfolio and have so for several years. I put my own money where my mouth is, and I believe in the fund.