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RDVY vs DGRO

Two rising-dividend ETFs with different index rules and growth tilts. Here’s how RDVY and DGRO compare for dividend investors — with a calculator for each so you can model the income yourself.

RDVY

First Trust Rising Dividend Achievers ETF

Type
Dividend-growth ETF
Issuer
First Trust
Pays
quarterly

RDVY tracks the NASDAQ US Rising Dividend Achievers Index, screening for companies with a record of raising dividends plus healthy payout ratios, cash, and earnings growth. It targets firms positioned to keep increasing their payout rather than the highest current yielders.

RDVY dividend calculator

DGRO

iShares Core Dividend Growth ETF

Type
Dividend-growth ETF
Issuer
iShares
Pays
quarterly

DGRO tracks the Morningstar US Dividend Growth Index, selecting companies with at least five consecutive years of dividend growth and sustainable payout ratios. It is a core holding for investors prioritising a rising payout over a high starting yield.

DGRO dividend calculator

How RDVY and DGRO differ

RDVYRDVY tracks the NASDAQ US Rising Dividend Achievers Index, screening for companies with a record of raising dividends plus healthy payout ratios, cash, and earnings growth. It targets firms positioned to keep increasing their payout rather than the highest current yielders.

DGRODGRO tracks the Morningstar US Dividend Growth Index, selecting companies with at least five consecutive years of dividend growth and sustainable payout ratios. It is a core holding for investors prioritising a rising payout over a high starting yield.

In practice the choice comes down to your goal. RDVY suits an investor who wants a rising dividend over time rather than the highest starting yield, while DGRO suits one who wants a rising dividend over time rather than the highest starting yield. The two are not mutually exclusive — plenty of portfolios hold a growth-oriented fund and an income-oriented one together. What matters is matching each to its job and not judging a fund on its headline yield alone.

Rather than compare a single snapshot yield (which moves daily), open each calculator and enter current figures: the RDVY calculator and the DGRO calculator. To compare long-term compounding head to head, run the same contributions through the dividend reinvestment calculator with each fund’s assumptions.

RDVY vs DGRO FAQ

What's the main difference between RDVY and DGRO?
RDVY is a dividend-growth etf from First Trust; DGRO is a dividend-growth etf from iShares. Two rising-dividend ETFs with different index rules and growth tilts.
Does RDVY or DGRO pay more dividends?
It depends on current figures, which change — use the calculators linked below with each fund's live yield rather than a fixed number. As a rule, higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.
Which is better, RDVY or DGRO?
Neither is universally better — they suit different goals. RDVY fits an investor who wants a rising dividend over time rather than the highest starting yield; DGRO fits one who wants a rising dividend over time rather than the highest starting yield. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.
Can I hold both RDVY and DGRO?
Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.
See all dividend ETF comparisons →