This Quality Dividend-Growth ETF Looks to the Future
This strategy effectively targets firms that should have the capacity to raise their dividends in the future.
Dividend growth is nice if you're along for the ride, but it can be challenging to identify future dividend-growth leaders. A record of consistent dividend growth is often a good sign, but requiring a lengthy dividend-growth record can preclude investments in firms that recently started paying dividends or whose fundamentals have improved. WisdomTree U.S. Quality Dividend Growth ETF (DGRW) uses forward-looking information to target stocks that can grow their dividends significantly in the future.
This exchange-traded fund favors highly profitable stocks with durable competitive advantages that should have the capacity to raise their dividends and generate attractive returns over time. But it ignores firms' records of past dividend growth, which reflects managers' willingness to raise their dividends and the stability of the underlying businesses. As a result, DGRW has tended to exhibit slightly greater volatility than Vanguard Dividend Appreciation ETF (VIG). It also charges a higher fee of 0.28%. It warrants a Morningstar Analyst Rating of Bronze.
Alex Bryan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.