iShares Dividend Growth ETF (DGRO) analysis as inflows resume

The iShares Core Dividend Growth ETF (DGRO) is one of the best-performing dividend funds this year. The fund has jumped to the highest level since April 2022. It has jumped by more than 8% in the past 12 months while its peers like SCHD, VYM, and HDV funds have risen by less than 5%.

Is iShares Core Dividend Growth a good fund?

The iShares Core Dividend Growth fund is a popular ETF that have more than $23 billion in assets under management (AUM). The fund’s goal is to give investors exposure to companies that have demonstrated a record of growing their dividends. 

The iShares Core Dividend Growth ETF fund has an expense ratio of 0.03%, which is comparable to other funds in the industry. Most importantly, the fund has started gaining traction in the past few days. After having outflows in the first five months of the year, it gained over $145 million in inflows in June.

DGRO ETF inflows and outflows

The DGRO ETF tracks many companies that have fast-growing dividends. Its biggest companies are Microsoft, Apple, JP Morgan, Exxon Mobil, and Chevron. Other big companies in the fund are Abbvie, Procter & Gamble, Home Depot, and Broadcom.

In terms of their composition, the biggest companies in the industry are in the health care sector that have a 18.5%. They are followed by companies in financials, information technology, industrials, consumer staples, and energy.

DGRO is a good ETF for several reasons. First, the fund holds companies that have demonstrated a track record of growing their dividends. Second, most firms in the fund are quality companies that have safe dividends and healthy payout ratios. 

Third, the fund is highly diversified, with the top ten firms not having an outsize role in its performance. 

The only challenge is that the iShares Core Dividend Growth ETF has a lackluster dividend yield. It has a yield of just 2.4%, which is lower than what short-term bonds are yielding. Most importantly, the fund has a close correlation to other popular funds like SPY. 

DGRO ETF stock price forecast

The daily chart shows that the iShares Core Dividend Growth ETF has been in a strong bullish trend in the past few weeks. It is now trading at $51.66, a few points below the year-to-date high of $51.90. 

DGRO has formed an ascending triangle pattern, which is usually a bullish sign. It is also hovering at the 78.2% Fibonacci Retracement level. Most importantly, the shares have formed an ascending triangle pattern. Therefore, the stock will likely continue rising as buyers target the key resistance level at $54.50, the highest point in December 2021.