DGRW Dividend History: Performance & Growth Analysis(2013-2024)

DGRW (WisdomTree U.S. Quality Dividend Growth Fund) is an ETF that focuses on U.S. companies with a strong track record of dividend growth and quality fundamentals. The fund has demonstrated consistent dividend growth with a 14.5% compound annual growth rate from 2013-2024, making it attractive for investors seeking growing income streams. DGRW screens for companies with sustainable dividend growth potential, strong balance sheets, and quality business models.

Yield-on-cost is calculated by dividing the current annual dividend by your original purchase price. For example, if you bought DGRW at $27.86 in 2013 and it now pays $1.25 annually, your yield-on-cost is 4.49%. This metric is crucial for long-term dividend investors as it shows how your income has grown relative to your initial investment, demonstrating the power of dividend growth investing over time.

DGRW focuses specifically on dividend growth rather than just high current yield. It uses WisdomTree’s proprietary methodology to select companies based on dividend growth potential, earnings quality, and return on equity. Unlike high-yield dividend ETFs that may include mature companies with limited growth, DGRW targets companies that can sustainably increase their dividends over time, providing both income and capital appreciation potential.

DGRW has shown resilience during market volatility, including the 2020 pandemic and 2022 market correction. While the share price fluctuated, the fund maintained its dividend payments and continued its growth trajectory. The dividend actually increased from $1.173 in 2021 to $1.300 in 2022, demonstrating the quality of underlying holdings that can maintain and grow dividends even during challenging periods.

DGRW has a competitive expense ratio of 0.28%, which is reasonable for an actively managed dividend growth strategy. This means that for every $10,000 invested, you pay $28 annually in fees. The expense ratio is factored into the fund’s performance, and the strong dividend growth and total returns have more than compensated for the management fee over the fund’s history.

DGRW pays dividends monthly, typically around the middle of each month. This frequent distribution schedule provides regular income for investors and allows for more consistent cash flow compared to quarterly dividend payers. The monthly payments also enable better dollar-cost averaging for investors who reinvest their dividends.

DGRW can be an excellent component of a retirement income strategy due to its focus on growing dividends and monthly distributions. The fund’s track record shows that early investors have seen their yield-on-cost grow to over 4.5%, providing increasing income over time. However, like all investments, it should be part of a diversified portfolio and aligned with your risk tolerance and time horizon.

This tool allows you to analyze DGRW’s historical performance and project potential returns based on different entry points. Use the Time Machine feature to see how investments made in different years would have performed. The dividend history chart shows the consistency of growth, while the yield-on-cost chart demonstrates the income growth potential. You can also download the historical data for your own analysis and record-keeping.