DGRO vs. HDV: Which BlackRock iShares Dividend ETF Pays More Income?

Investors looking for dividend income often compare BlackRock’s BLK -7.17% ▼ iShares Core Dividend Growth ETF DGRO -0.83% ▼ and iShares Core High Dividend ETF HDV -0.39% ▼ . Using TipRanks’ Best BlackRock ETFs tool, we looked at the two funds to see which one may offer better income potential. While DGRO focuses on companies that steadily grow their dividends, HDV targets stocks that currently offer higher yields.

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Investors can use TipRanks’ Compare ETFs tool to analyze options side by side. Let’s take a closer look at these ETFs.

**iShares Core Dividend Growth ETF DGRO -0.83% ▼ **

The iShares Core Dividend Growth ETF is one of BlackRock’s core dividend funds, built for investors who prefer companies that steadily raise their dividends. Instead of chasing the highest yields, the fund focuses on firms with a strong history of dividend growth, which can help provide more stable income over time. The ETF also has a low expense ratio of 0.08%, making it a cost-efficient option for long-term investors.

DGRO currently offers a dividend yield of about 1.99%. Its strategy centers on companies with solid earnings and a history of raising dividends, which helps the fund maintain consistency even during market fluctuations.

The ETF manages about $38.67 billion in assets and holds a broad portfolio of dividend-paying companies across sectors. This diversified approach helps reduce risk while still giving investors exposure to firms known for steady dividend growth.

Is DGRO ETF a Good Buy?

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, DGRO is a Moderate Buy. The Street’s average price target of $83.36 implies an upside of 15%.

**iShares Core High Dividend ETF HDV -0.39% ▼ **

The iShares Core High Dividend ETF is another key dividend fund from BlackRock, but it focuses on stocks that currently offer higher dividend yields. Instead of emphasizing dividend growth, the fund targets large, established companies with strong cash flows and reliable payouts.

HDV currently offers a dividend yield of about 2.83%, which is higher than DGRO’s yield. The ETF also maintains a low expense ratio of 0.08%, making it a cost-effective choice for income-focused investors.

The fund manages about $10.85 billion in assets and holds 75 stocks, giving it a more concentrated portfolio compared with DGRO. Its top holdings include major companies such as Exxon Mobil XOM +0.30% ▲ , Johnson & Johnson JNJ +0.32% ▲ , and Chevron CVX +0.02% ▲ , which are known for stable dividends and strong balance sheets.

Is HDV a Good ETF?

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, HDV is a Moderate Buy. The Street’s average price target of $147.86 implies an upside of 8.31%.

Conclusion

HDV offers a higher current yield, making it the better choice for investors who want stronger income today. DGRO, on the other hand, focuses on companies that steadily grow their dividends, which may lead to more stable income growth over time. The right choice depends on whether an investor prefers higher current yield or long-term dividend growth.

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