DGRO vs HDV: Dividend Comparison
Dividend data as of
iShares Core Dividend Growth ETF (DGRO) and iShares Core High Dividend ETF (HDV) are both in the ETF sector, making them natural rivals for dividend investors. HDV edges ahead on yield at 2.96% versus DGRO's 2.02%. For dividend growth, DGRO leads with a 5-year CAGR of 7.9% versus HDV's 2.8%. DGRO is a Dividend Challenger with 9 years of consecutive increases.
Verdict
Yield Analysis
HDV yields 0.94% more than DGRO. In dollar terms, DGRO pays $1.45/share vs HDV's $3.91/share annually.
Dividend Growth
DGRO: Dividend growth is slowing — the 3-year CAGR of 5.0% trails the 5-year rate of 7.9% and the 10-year rate of 12.6%.
HDV: Dividend growth is slowing — the 3-year CAGR of 0.2% trails the 5-year rate of 2.8% and the 10-year rate of 4.2%.
Dividend Safety
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DGRO vs HDV today?
At $73.66 per share, $10,000 buys about 135.8 shares of iShares Core Dividend Growth ETF (DGRO). Each share pays $1.45 per year in dividends, so the position starts out generating roughly $197 per year — about $16 a month.
At $138.92 per share, $10,000 buys about 72.0 shares of iShares Core High Dividend ETF (HDV). Each share pays $3.91 per year in dividends, so the position starts out generating roughly $282 per year — about $23 a month.
HDV is the larger income stream from day one: $85 per year more on the same $10,000 invested.
What could $10,000 of DGRO or HDV income look like in 10 years?
iShares Core Dividend Growth ETF (DGRO) has raised its dividend about 7.9% a year over the past five years. If that pace held, the $202 per year that $10,000 generates today at the current 2.02% yield would reach $430 per year by 2036 — a 4.3% yield on the original cost.
iShares Core High Dividend ETF (HDV) has raised its dividend about 2.8% a year over the past five years. If that pace held, the $296 per year that $10,000 generates today at the current 2.96% yield would reach $389 per year by 2036 — a 3.9% yield on the original cost.
On those trailing rates, DGRO pays more in 2036: $430 versus $389 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would DGRO's dividend growth overtake HDV's higher yield?
iShares Core Dividend Growth ETF (DGRO) yields less today (2.02% vs 2.96%) but has grown its dividend faster — 7.9% vs 2.8% a year over the past five years. If both trends continued, a $10,000 position in DGRO would start out-earning the same position in HDV around 2034 (roughly 8 years from now), paying about $370 per year at the crossover. Before that point, HDV pays more each year; after it, the gap compounds in DGRO's favor.
Why is there no payout ratio for DGRO or HDV?
REWD has neither an earnings-per-share figure nor a payout ratio for iShares Core Dividend Growth ETF (DGRO) and iShares Core High Dividend ETF (HDV) — typical for ETFs and covered-call funds, whose distributions are funded by the underlying portfolio (stock dividends, option premium, or return of capital) rather than a single company's earnings. For a fund, judge sustainability by the distribution history and the strategy behind it, not a payout ratio.
Which fits an early-retirement income portfolio better, DGRO or HDV?
For income you need right now, iShares Core High Dividend ETF (HDV) leads: $100,000 invested today pays about $247 a month at the current 2.96% yield, versus $168 a month from iShares Core Dividend Growth ETF (DGRO) at 2.02%.
With a decade or more before the income is needed, DGRO's faster dividend growth (7.9% vs 2.8% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: DGRO has raised its dividend 9 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $526/yr in DGRO vs $520/yr in HDV by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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