Bulletin
Investor Alert

New York Markets Close in:

Sept. 26, 2022, 12:12 p.m. EDT

An Ideal ETF for Buy-and-Hold Investors

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Microsoft Corp. (MSFT)
  • X
    Apple Inc. (AAPL)
  • X
    Johnson & Johnson (JNJ)

or Cancel Already have a watchlist? Log In

Sep 26, 2022 (Baystreet.ca via COMTEX) -- If you're looking for an investment that you can buy and hold for years, you'll probably want both some safety and potential to earn some terrific dividend income. The iShares Core Dividend Growth ETF (nyse arca:DGRO) can fit both of those needs. The exchange-traded fund (ETF) has investments in some of the safest dividend-paying stocks available.

By focusing on dividend stocks that grow their yields, investors know that the businesses are already generally safe in nature; companies without stable or strong financials won't be able to consistently raise their payouts. The top holdings in the ETF include big names such as Microsoft /zigman2/quotes/207732364/composite MSFT -0.0069% , Apple /zigman2/quotes/202934861/composite AAPL -1.36% , Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +0.76% , JPMorgan Chase /zigman2/quotes/205971034/composite JPM +0.05% , and Pfizer /zigman2/quotes/202877789/composite PFE +1.84% . The fund is also well-diversified as none of those stocks account for even 3% of its total holdings. There are 413 holdings in the portfolio as of Sept. 22. They are also modestly valued, with the fund averaging a price-to-earnings ratio of 15 and a price-to-book multiple of less than three.

Two-fifths of the stocks are either in financials or information technology. Health care stocks account for 17% of the fund's total weight, followed by industrials at 13% and consumer staples at less than 12%. With a modest expense ratio of only 0.08%, investors are getting tons of diversification and a solid source of recurring income with this ETF.

The Core Dividend Growth ETF currently yields 2.1%, which is better than the S&P 500 average of 1.7%. And in the long term, investors will likely see their dividend income rise.

COMTEX_415317373/2559/2022-09-26T12:12:28

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 245.10
-0.02 -0.0069%
Volume: 8.94M
Dec. 7, 2022 1:02p
P/E Ratio
26.38
Dividend Yield
1.11%
Market Cap
$1827.24 billion
Rev. per Employee
$918,891
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 140.97
-1.94 -1.36%
Volume: 35.98M
Dec. 7, 2022 1:02p
P/E Ratio
23.14
Dividend Yield
0.65%
Market Cap
$2273.43 billion
Rev. per Employee
$2.40M
loading...
/zigman2/quotes/201724570/composite
US : U.S.: NYSE
$ 177.43
+1.33 +0.76%
Volume: 2.11M
Dec. 7, 2022 1:02p
P/E Ratio
24.67
Dividend Yield
2.55%
Market Cap
$460.41 billion
Rev. per Employee
$678,214
loading...
/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 131.66
+0.07 +0.05%
Volume: 4.60M
Dec. 7, 2022 1:02p
P/E Ratio
11.13
Dividend Yield
3.03%
Market Cap
$385.98 billion
Rev. per Employee
$512,134
loading...
/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 50.63
+0.92 +1.84%
Volume: 7.21M
Dec. 7, 2022 1:02p
P/E Ratio
9.74
Dividend Yield
3.16%
Market Cap
$279.04 billion
Rev. per Employee
$1.26M
loading...

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.