DGRO vs PEY

DGROAiShares Core Dividend Growth ETF

PEYCInvesco High Yield Equity Dividend Achievers ETF

In short

DGRO BlackRock's dividend-growth screen casts a wider net than most: five straight years of raises rather than ten, plus a payout-ratio cap that filters out stretched payers. About 400 US dividend raisers, large through small cap, for 0.08% a year.

PEY Two screens stacked: ten straight years of dividend increases, then the 50 highest yielders, weighted by yield instead of company size. Running since 2004, paying monthly, at 0.68%.

Stated mandate

DGRO The fund seeks to follow an index of U.S. equities whose dividends have grown consistently.

PEY The fund seeks to track, before fees and expenses, the NASDAQ US Dividend Achievers 50 Index. It normally invests at least 90% of assets in dividend-paying common stocks comprising that index.

Why people hold it

• DGRO Costs 0.08% a year, a small fraction of the typical fee among US dividend-screen ETFs.
• The screen has teeth: a qualified dividend, five years of uninterrupted dividend growth, a payout ratio under 75%, and the top decile of yielders cut before the other tests run.ishares.com
• Roughly 400 names across large, mid and small caps, weighted by the dividend dollars each company pays rather than by market cap.ishares.comcib.barclays
• Tracks the Morningstar US Dividend Growth Index about as tightly as this group gets, and it's an actively traded, multi-billion-dollar fund that has run since 2014.

• PEY Names must have raised dividends ten years running before the yield hunt starts; the index then takes the top 50 by yield, reconstituted each March and rebalanced quarterly.nasdaq.comnasdaq.com 2invesco.com
• Income arrives monthly rather than quarterly, from a concentrated book of about 50 dividend payers.
• Listed in December 2004, one of the longest-running dividend screens in ETF form, so its behavior across multiple market cycles is lived history, not a backtest.

Worth knowing

• DGRO Chopping the highest-yielding decile is deliberate: this is built around payout growth and dividend durability, not the fattest current yield on the shelf.ishares.com
• Only dividend payers qualify, so some of the market's biggest non-paying growth companies sit outside the portfolio by rule.ishares.com
• Income arrives quarterly, not monthly, and this is plain US stock exposure: no buffer, no hedge, full equity risk.

• PEY The 0.68% fee sits above the category median and well above index rivals such as SCHD at 0.06% and VIG at 0.04%.
• Weighting by dividend yield, not company size, puts the heaviest weights on the biggest payers, and a fat yield sometimes reflects a beaten-down price rather than a thriving business.nasdaq.com
• About 50 holdings is a narrow slice of the dividend market, so individual names and sector tilts carry real weight.

Full DGRO profile⁠

Full PEY profile⁠