Q – Are there one or two US based dividend paying ETFs you could recommend? – Harry S.
A – Take a look at the iShares Core Dividend Growth ETF (NYSEArca: DGRO). It was recommended by Adam Mayers in December 2019 at $41.26 and is now trading at $63.76 (figures in US dollars).
The fund invests in US companies with a sustained history of dividend growth. It’s a broadly diversified portfolio (407 holdings) of blue-chip stocks such as JPMorgan Chase, Johnson & Johnson, Broadcom, AbbVie, and Apple.
Distributions are paid quarterly and are usually between $0.30 and $0.40 a unit. Total payments over the past 12 months were $1.105 for a trailing yield of 1.7%. The total return for the year to Jan. 31 was 19.2% and the ETF has generated a very good 10-year average annual compound rate of return of 12.2%. The MER is very low at 0.08%. – G.P.