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Dividend Growth ETF (DGRO) Hits New 52-Week High

Sweta Jaiswal, FRM

For investors looking for momentum, iShares Core Dividend Growth ETF DGRO is probably a suitable pick. The fund just hit a 52-week high and is up roughly 26.6% from its 52-week low price of $31.04/share.

But does this ETF have more gains in store? Let’s take a look at the fund and its near-term outlook to gain insight into where it might be headed:

DGRO in Focus

The underlying Morningstar US Dividend Growth Index is composed of U.S. equities with a history of consistently growing dividends. It holds each of the top 10 stocks in more or less the same proportion in a drive toward diversification. Also, the fund’s exposure to securities is not limited to the characteristics of dividend income but includes stocks that can provide capital growth. Also, being a large-cap value fund, the ETF is less volatile and less risky. DGRO is charging 8 bps in fees.

Why the Move?

Uncertainties surrounding the US-China trade deal and global economic slowdown are compelling investors to switch to safer options. Moreover, speculations surrounding possible Fed rate cuts are making dividend investing appealing.

More Gains Ahead?

Currently, DGRO has a Zacks ETF Rank #1 (Strong Buy) and it holds some promise for investors who want to ride this surging ETF a little further.

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iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
 
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