DGRO: Dividend Growth Is A Good Strategy, But This ETF Has Some Serious Limitations

  • I am supportive of the general idea of dividend growth investing, since it is a simple but powerful way to select high-quality stocks. DGRO offers one interpretation of a dividend growth strategy, and has provided strong results since its 2014 inception, especially in weaker periods for the broader market. Nonetheless, I am concerned that its stock selection is too simple and robotic, especially the rule which disqualifies the highest 10% yielding stocks available.