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5 min
Updated December 2025

DGRO vs VIG: Best Dividend Growth ETF for 2026?

Comparing iShares Core Dividend Growth vs Vanguard Dividend Appreciation for long-term dividend investing.

Head-to-Head Comparison

Metric
DGRO
VIG
Expense Ratio
0.08%
0.06%
Dividend Yield
2.35%
1.78%
5Y Total Return
12.1%
13.45%
Volatility
15.8%
16.1%
Distribution
Quarterly
Quarterly
Tax Efficiency
High
High

The Verdict by Scenario

Scenario

Higher current yield

DGRO

DGRO yields 2.35% vs VIG's 1.78%, delivering 30% more income on the same investment today.

Scenario

Longest dividend growth track record

VIG

VIG requires 10+ consecutive years of dividend increases; DGRO only requires 5 years, making VIG more selective.

Scenario

Overall quality

🤝Tie

Both focus on dividend growth over yield-chasing. The small differences make either an excellent core holding.

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Section 1Dividend Growth Philosophy

DGRO and VIG share the same philosophy: own companies that consistently raise dividends rather than chasing the highest yields. This approach tends to favor quality companies with sustainable payouts. The key difference is selection criteria, VIG requires 10 years of dividend growth, DGRO requires only 5 years plus quality screens.

Section 2DGRO: Flexible Dividend Growth

DGRO's 5-year dividend growth requirement allows it to capture younger dividend growers and tech companies that recently started paying dividends. It also screens for payout ratio and ROE, adding quality filters. The result is higher yield than VIG with exposure to more growth-oriented dividend payers.

Section 3VIG: The Blue-Chip Approach

VIG's strict 10-year requirement filters for proven dividend aristocrats with long track records. You get Microsoft, Johnson & Johnson, and Procter & Gamble, companies that maintained dividends through multiple recessions. Lower yield, but arguably more reliable dividend growth trajectory.
WT
WealthTrails
Updated December 2025
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