DGRO Dividend Calculator
See the power of dividend reinvestment with iShares Core Dividend Growth ETF (DGRO)
The DGRO Dividend Calculator is a valuable instrument that helps investors test the possible returns that could be earned from the iShares Core Dividend Growth ETF (DGRO) using the Dividend Reinvestment Plan (DRIP) strategy. Instead of taking dividends as cash, you can use this calculator to figure out how reinvesting those amounts into more DGRO shares could boost the growth of your wealth over time. The DGRO Dividend Calculator helps you calculate the Dividend Reinvestment Plan (DRIP) for the DGRO ETF (Exchange-Traded Fund).
Investment Details
How much you plan to invest initially
Additional amount you’ll invest each month
How many years you plan to keep investing
Current price as of 2024
Dividend Settings
DGRO’s recent paid annual dividend per share
DGRO’s 10-year dividend CAGR is approximately 7.5%
DGRO’s 10-year share price CAGR is approximately 8.2%
Toggle to compare with and without DRIP
DGRO Dividend Calculator Results
Enter your investment details and click “Calculate DRIP Returns” to see results.
Total Investment
$0
Final Portfolio Value
$0
Total Return
0%
Total Dividends Received
$0
Annual Dividend in Final Year
$0
Final Year Yield on Cost
0%
With DRIP
$0
Final Portfolio Value
Without DRIP
$0
Final Portfolio Value
DRIP Advantage
0%
Additional Return
Live DGRO Market Data
Understanding DGRO Dividend Reinvestment
DGRO’s Dividend Growth History
DGRO or the iShares Core Dividend Growth ETF is an exchange-traded fund that focuses on high-quality U.S. companies with a history of growing dividends. The fund tracks the Morningstar US Dividend Growth Index, which consists of companies that have consistently increased their dividends.
DGRO’s dividend growth history is solid, with a consistent track record since its inception in 2014. The ETF has delivered a robust dividend yield averaging around 3.1% annually. This yield has shown steady growth, making it an important focus for quality dividend stocks.
The DGRO fund focuses on companies with strong fundamentals, helping ensure their ability to pay and grow dividends. In recent years, the average dividend growth rate of DGRO has been around 7.5% per year, making it an attractive option for income-focused investors.
How to Use the DGRO Dividend Calculator for Maximizing Long-Term Investment
Anyone who wants to get the most of their long-term investments needs the DGRO Dividend Calculator. To see your wealth grow over time, you need to know how to use it well. Follow these steps to use the calculator to get the most out of your DGRO investment:
Enter the amount of money you want to invest
You start by entering the amount of money you want to invest in the calculator above (for example, $10,000). This is the base of your calculation and will help you guess how much money you’ll make in the future.
Decide how much you want to give each month
Then you type in the amount you want to give each month like $500. Monthly contributions are a very important part of speeding up the growth of your investment over time.
Change the Investment Period
Now you can decide how many years you want to invest for. If you choose to invest for a longer time then you can usually expect more growth, which is what compound interest is all about.
Enter the Current Share Price and Dividend Information
Now you need to type in the current share price (for example, $61.60) and the information like the annual dividend per share and the expected annual growth rate.
Reinvest Dividends for Maximum Growth
You can also turn on the Dividend Reinvestment Plan (DRIP) to see how your returns will grow even more. This choice reinvests your dividends into more shares, which increases your total returns.
How to Manually Calculate DGRO Dividend Returns and the Formula You Need
If you want to understand the power of the DGRO Dividend Calculator then you need to know the math behind it. You can figure out your DGRO dividend returns by hand by doing the following:
Step 1: The formula for Dividend Growth
The basic formula for figuring out how much your DGRO investment will be worth in the future is:
Step 2: Factor in Monthly Contributions
You can use the Future Value of a Series Formula to figure out how much you need to put in each month:
Step 3: Add Dividend Reinvestment
To take dividend reinvestment into account, you can assume that you use each dividend payment to buy more DGRO shares which will increase your total returns over time.
If you use this method, you can figure out your returns by hand. But the DGRO Dividend Calculator does this for you which saves you time and effort.
Understanding the Key Variables in the DGRO Dividend Calculator
The DGRO Dividend Calculator uses several important variables to estimate your potential returns. If you know about these factors then you will be able to make better investment choices.
Initial Investment
This is the amount of money you initially invested in DGRO. If you invest a big amount then you will naturally lead to higher returns in the long term. But before investing you need to analyze it properly when need to invest.
Monthly Contributions
If you decide to make monthly contributions, this value plays a critical role in increasing your total investment. Even small donations can make a big difference over the long term.
Investment Period
How many years you plan to invest is very important. The longer you invest, the more time your dividends and the rise in the price of your shares have to compound.
DGRO Share Price
The price of DGRO shares affects how many shares you can buy with your initial investment and monthly contributions. For your calculations it is important that you need to enter the most accurate share price.
Dividend Growth Rate
The dividend growth rate tells you how much your dividends will go up each year. This is an important piece of information for figuring out how much money you’ll make from dividends in the future.
Rate of Increase in Share Price
This rate tells you how much the price of DGRO shares will go up each year. It’s important to be able to predict capital gains and know how much your DGRO investment could grow.
You can make your investment growth projections more accurate by knowing these important factors and changing each one.
Benefits of DRIP with DGRO
Automatic Dividend Reinvestment
The DRIP program with DGRO allows you to automatically reinvest dividends into additional shares without paying commissions.
Compounding Growth
Dividends can boost growth as shares increase with each payout, significantly increasing total returns over time.
Dollar-Cost Averaging
Regular dividend reinvestment provides automatic dollar-cost averaging, reducing market volatility impact.
Tax Benefits
DGRO dividends often qualify for preferential dividend tax treatment, potentially reducing your tax burden.
Consistent Growth
DGRO focuses on dividend-growing companies, offering reliable passive income streams for long-term investors.
Low-Cost Investment
DGRO’s low expense ratio of 0.08% makes it cost-efficient for dividend investors, maximizing returns.
Considerations for DGRO DRIP Investing
Tax Implications
While DRIP helps accumulate wealth, dividends are taxable income whether reinvested or taken as cash. Consider tax-advantaged accounts.
Market Volatility
DRIP doesn’t protect against losses in down markets, though it can provide opportunities to buy more shares at lower prices.
Long-Term Horizon
DRIP investing is ideal for long-term investors. The benefits of compounding require time to mature fully.
Dividend Variability
While DGRO focuses on dividend-growing companies, future dividend payments can vary based on economic conditions.
DGRO vs Popular Dividend ETFs Comparison
| Metric | DGRO | SCHD | VYM | NOBL |
|---|---|---|---|---|
| Current Dividend Yield | ~3.1% | ~3.5% | ~2.9% | ~2.0% |
| Dividend Growth Rate | ~7.5% | ~9.3% | ~6.8% | ~8.1% |
| Expense Ratio | 0.08% | 0.06% | 0.06% | 0.35% |
| Holdings Count | ~400+ | ~100 | ~440+ | ~50 |
| Focus | Dividend Growth | High Quality Dividend | High Dividend Yield | Dividend Aristocrats |