DGRO vs VIG: Dividend Comparison
Dividend data as of
iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG) are both in the ETF sector, making them natural rivals for dividend investors. DGRO edges ahead on yield at 2.02% versus VIG's 1.59%. Both stocks show similar dividend growth rates, each around 7.9% over the past five years. DGRO is a Dividend Challenger while VIG is a Dividend Contender.
Verdict
Yield Analysis
DGRO yields 0.43% more than VIG. In dollar terms, DGRO pays $1.45/share vs VIG's $3.56/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%.
VIG: Dividend growth is slowing — the 3-year CAGR of 5.3% trails the 5-year rate of 7.5% and the 10-year rate of 7.7%.
Dividend Safety
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DGRO vs VIG 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 $227.44 per share, $10,000 buys about 44.0 shares of Vanguard Dividend Appreciation ETF (VIG). Each share pays $3.56 per year in dividends, so the position starts out generating roughly $156 per year — about $13 a month.
DGRO is the larger income stream from day one: $41 per year more on the same $10,000 invested.
What could $10,000 of DGRO or VIG 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.
Vanguard Dividend Appreciation ETF (VIG) has raised its dividend about 7.5% a year over the past five years. If that pace held, the $159 per year that $10,000 generates today at the current 1.59% yield would reach $329 per year by 2036 — a 3.3% yield on the original cost.
On those trailing rates, DGRO pays more in 2036: $430 versus $329 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would VIG's dividend growth overtake DGRO's higher yield?
It doesn't, on the trailing numbers. iShares Core Dividend Growth ETF (DGRO) yields more today (2.02% vs 1.59%) and has also grown its dividend at least as fast (7.9% vs 7.5% a year over five years). Unless VIG accelerates its raises or DGRO stumbles, VIG never closes the income gap — DGRO wins on both current income and growth.
Why is there no payout ratio for DGRO or VIG?
REWD has neither an earnings-per-share figure nor a payout ratio for iShares Core Dividend Growth ETF (DGRO) and Vanguard Dividend Appreciation ETF (VIG) — 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 VIG?
For income you need right now, iShares Core Dividend Growth ETF (DGRO) leads: $100,000 invested today pays about $168 a month at the current 2.02% yield, versus $133 a month from Vanguard Dividend Appreciation ETF (VIG) at 1.59%.
On consistency: DGRO has raised its dividend 9 consecutive years; VIG has raised its dividend 12 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 $385/yr in VIG 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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