This Dividend ETF Won't Let a Stock In Unless It Passes 2 Strict Tests. Here's Why That Matters.
The iShares Core Dividend Growth ETF aims to hold companies that increase their dividends.
Overview
The iShares Core Dividend Growth ETF (NYSEMKT: DGRO) passively tracks an index made up of U.S. companies with a history of dividend growth. However, that index, the Morningstar U.S. Dividend Growth Index, won't include a company unless it passes two strict tests:
Additionally, the index excludes REITs and companies with a dividend yield in the top 10% of the dividends screened (after excluding REITs). Here's why these two strict tests matter.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
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