NVDA - DGRW: An Alternative To SCHD But With A Caveat

2024-03-08 23:04:54 ET

Summary

• DGRW's dividend growth has been lackluster, but the ETF has provided a superior total return compared against the S&P500.
• The holdings are weighted more heavily towards tech. As a result, the price is more likely to experience upside.
• There are several catalysts that can help propel DGRW to higher prices. This includes AI, interest rate cuts, and increased consumer spending.

Overview

The WisdomTree Dividend Growth Fund ( DGRW ) is a solid dividend ETF that focuses its holdings on quality dividend paying companies throughout all sectors. The fund offers instant diversification and gives you exposure to some of the best companies in the world. While the dividend yield is on the lower end of the spectrum at 1.6%, the fund outperforms Schwab's US Dividend ETF ( SCHD ) in total return over a 10 year period. The caveat here is that the dividend growth of DGRW has been quite bad in comparison to SCHD's dividend growth....

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