1 Unstoppable Dividend ETF Up 10.8% in 2026 to Buy and Hold for the Next 20 Years
Key Points
One of the biggest fears among investors right now is whether artificial intelligence (AI) will pay off, or if there is an AI bubble that could take down the stock market. The S&P 500 (SNPINDEX: ^GSPC) has become top-heavy with tech majors. What if you want to invest your money differently and get away from AI stocks?
Good news: there’s a high-yield dividend ETF that could be a great fit for this defensive strategy. The iShares Core Dividend Growth ETF (NYSEMKT: DGRO) is up about 11% year to date and has delivered an average annual return of 13.5% over the past 10 years.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let’s look at this dividend ETF and see if it’s a good choice for your investment goals.
Image source: Getty Images.
iShares Core Dividend Growth ETF (DGRO): 12 years of 12.4% annualized returns
The iShares Core Dividend Growth ETF holds 390 U.S. companies with a history of dividend growth. This ETF was established in June 2014 and has delivered an average annual return of 12.4% since. In the past year, this fund has returned 20.6%.
One good reason for buying DGRO is its dividends. As of Aug. 31, the fund was paying a 30-day SEC Yield of 1.95%, which is competitive with some of the best dividend index funds.
Why buy and hold DGRO for 20 years
Recent research from Vanguard projects that U.S. value stocks are likely to outperform U.S. growth stocks for the next 10 to 30 years. Vanguard’s researchers believe that today’s AI stocks are not going to be the biggest winners of AI in the long run. Instead, the biggest future gains from the AI boom could go to a wider range of companies in other industries beyond tech and today’s AI trade.
The iShares Core Dividend Growth ETF owns many value-oriented stocks of companies that fit that description. There’s no guarantee that Vanguard’s estimates are correct. But if you agree with the general direction of this research, dividend stocks like the ones owned by DGRO could be strong investments for the future.
This fund is not too tech-heavy. Only about 16.7% of its holdings are in the information technology sector. DGRO owns a broad range of companies across sectors, such as healthcare (18.6% of the fund’s holdings), financials (20.7%), and consumer staples (11.8%), which may be less exposed to a potential AI bubble.
Even if the AI trade enters a downturn or there’s a big tech sell-off, the iShares Core Dividend Growth ETF might keep growing. That strategic position, plus the solid dividend yield, could make this ETF a good choice to buy and hold for 20 years.
Should you buy stock in iShares Trust – iShares Core Dividend Growth ETF right now?
Before you buy stock in iShares Trust – iShares Core Dividend Growth ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust – iShares Core Dividend Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 22, 2026.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
