If you know me, you know that I like stocks that have growing dividends supported by growing earnings. When I set up the UTMA accounts for our grandchildren at Fidelity Investments, this is one of the first ETFs I bought for them.

I like the top holdings in this ETF, as they mirror the stocks that I hold in my retirement and brokerage accounts. It includes companies like Pfizer, Johnson & Johnson (dropped today on bad news about their baby powder), Microsoft, Procter &  Gamble, JP Morgan Chase, Wells Fargo, Apple,  Coca-Cola and Cisco. The expense ratio is a sensible 0.08% and there are no trading costs for buying or selling this ETF at Fidelity Investments. It provides good income, good potential for growth a decent diversification into 432 businesses.

Here are some key things about DGRO:

Expense Ratio                                        0.08% Excellent

Assets Under Management (AUM)       5.1B – A good size.

ETF Category                                        Large Value

Net Asset Value (NAV)           $34.87

Total Holdings                       432 – excellent diversification.

Dividend yield                       2.21% – A good yield.

5-Year Returns                       Not available. 3-year is 14.15% which is GOOD.

Ranking (AMZA – Real-Time SMART Grade™) on etfdailynews.com is #14 of 152 in this class of ETFs.

The XTF.COM rating for DGRO is 9.8 out of 10.0 with FIVE Morningstar stars.

Some comparable ETFs are VYM, DVY, SCHD and HDV. When I set up the UTMA accounts I bought shares of DVY for the grandchildren as well.

You can find the XTF, Morningstar and other ratings when you are signed on to a Fidelity Investments accounts. I prefer the XTF rating over Morningstar.

Recommendation: Buy DGRO to get yield and some growth. This is a good investment.