DGRO vs JEPQ: Dividend Yield, Growth & Safety Comparison
iShares Core Dividend Growth ETF (DGRO) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) are both in the ETF sector, making them natural rivals for dividend investors. JEPQ offers a significantly higher 10.31% yield compared to DGRO's 2.02%, a gap of 8.29%. For dividend growth, DGRO leads with a 5-year CAGR of 7.9% versus JEPQ's 1.9%. DGRO is a Dividend Challenger with 9 years of consecutive increases.
Key Metrics Comparison
| Metric | DGRO | JEPQ |
|---|
| Dividend Yield | 2.02% | 10.31% |
| Annual Dividend | $1.45 | $6.14 |
| 5-Year CAGR | 7.9% | 1.9% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 9 | 0 |
| Price | $73.66 | $57.59 |
Yield Comparison
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) currently yields 10.31%, which is high for the broader market. That's 8.29% more than iShares Core Dividend Growth ETF (DGRO), which yields 2.02%. In dollar terms, JEPQ pays $6.14/share annually versus DGRO's $1.45/share.
Dividend Growth
Over the past five years, DGRO has grown its dividend at a 7.9% CAGR compared to JEPQ's 1.9%. 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%. JEPQ: Dividend growth is accelerating — the 3-year CAGR of 15.9% exceeds the 5-year rate of 1.9% and the 10-year rate of 1.9%.
Dividend Safety
DGRO's dividend safety is rated "Unknown." Insufficient data to assess dividend safety. JEPQ's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in JEPQ generates approximately $1031/year in dividend income, compared to $202/year from DGRO — a difference of $829/year. At $100,000, that gap widens to $8290/year.
Verdict
- Best for income: JEPQ
- Best for growth: DGRO
Frequently Asked Questions
Which has a higher dividend yield, DGRO or JEPQ?
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a higher dividend yield of 10.31% compared to iShares Core Dividend Growth ETF (DGRO) at 2.02%.
Is DGRO or JEPQ a better dividend growth stock?
iShares Core Dividend Growth ETF has the stronger dividend growth with a 5-year CAGR of 7.9%, compared to JPMorgan Nasdaq Equity Premium Income ETF's 1.9%.
How much income does $10,000 in DGRO vs JEPQ generate?
A $10,000 investment in DGRO generates approximately $202/year in dividends, while the same amount in JEPQ generates about $1031/year.
Is DGRO or JEPQ a Dividend Aristocrat?
iShares Core Dividend Growth ETF is a Dividend Challenger with 9 consecutive years of increases. JPMorgan Nasdaq Equity Premium Income ETF does not currently qualify for aristocrat status.
DGRO vs JEPQ: which is better for retirement income?
It depends on your priorities. JEPQ for current income, DGRO for dividend growth. Many retirement investors hold both for diversification.
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