VIG - DGRO: An Annual Reconstitution Just In Time For Christmas

Summary

• DGRO's Index reconstituted effective December 16. This article summarizes these updates and provides a new set of fundamentals for this cost-effective dividend growth ETF.
• The big additions this year were Exxon and Chevron, now representing a combined 5.70% of the portfolio. With higher oil prices, DGRO is now more competitive from a growth perspective.
• AbbVie also qualifies after solid recovery this year, previously failing the "extreme dividend yield" screen used to eliminate yield traps.
• Overall, the reconstitution was favorable. This article compares the portfolio's fundamentals both pre- and post-reconstitution, indicating that 2023 will be another solid year for shareholders.

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