Want Decades of Passive Income? Buy This ETF and Hold It Forever

By Todd Shriber – Feb 17, 2026 at 12:30PM ESTKey PointsThe iShares Core Dividend Growth ETF is well-suited for investors looking to build passive income streams.Its roster includes a slew of reliable dividend raisers, and it has proven to be one of the best in its category.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSEMKT: DGROiShares Trust - iShares Core Dividend Growth ETFToday's Changeangle-down(-0.22%) $0.17Current Price$73.45Price as of February 17, 2026 at 1:35 PM ETThis iShares ETF delivers steady income with strong prospects for long-term payout growth.In golf, there's an old saying, "Driving's for show, putting's for dough." Believe it or not, it applies to dividend investing too. Think of it this way. A large dividend yield is like a long drive. It's eye-catching and draws adulation from the crowd, but what really matters is long-term payout growth. Call it the putting of investing, but it's critical for investors who want to build durable long-term passive income. Reliable sources of payout growth can be accessed with an array of exchange-traded funds (ETFs), including the iShares Core Dividend Growth ETF (DGRO 0.22%). Image source: Getty Images. The dependability offered by this ETF makes it a suitable addition to broader buy-and-hold strategies, but it's worth examining how this fund delivers dividend growth. DGRO does things differently Many dividend growth ETFs track indexes that make the length of the payout increase streak central to their weighting schemes. Said differently, there are dividend ETFs that track indexes that require 10, 20, or more years of boosted payouts. There's nothing wrong with that methodology, but this iShares ETF does things differently. This $38.37 billion ETF tracks the Morningstar US Dividend Growth Index, which emphasizes cobbling together a lower-volatility, higher-quality lineup. The strategy works. For the 10 years ended Jan. 31, 2026, just two dividend ETFs outperformed the iShares fund. Fans of dividend increase streaks can take heart because this ETF and a competing fund tracking the S&P 500 Dividend Aristocrats® index, which requires at least 25 straight years of boosted payouts, have more than 50 holdings in common. However, the iShares fund beat that rival over the past decade. (Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC.) To be sure, the iShares Core Dividend Growth ETF leans into sectors known for steadily rising dividends, as healthcare, consumer staples, and industrial stocks combine for approximately 43% of the fund's roster. ExpandNYSEMKT: DGROiShares Trust - iShares Core Dividend Growth ETFToday's Change(-0.22%) $-0.17Current Price$73.45Key Data PointsDay's Range$73.19 - $73.9752wk Range$54.09 - $74.28Volume1.2M Increasing the ETF's long-term income potential is its exposure to sectors boosting their dividend profiles. For example, the fund's third-largest sector allocation is technology, which is climbing the dividend ranks. In 2024, only healthcare and financial services saw payouts increase at higher compound annual growth rates (CAGR) than did tech. In fact, this ETF's most significant sector weight is financial services, where improving balance sheet quality should pave the way for the largest domestic banks to pass the Federal Reserve's annual stress test -- thus, setting the stage for increased shareholder rewards. This ETF has a bright future The biggest knock against this iShares ETF, and many of its rivals for that matter, is that it's likely to lag in bull markets that are led by low-yielding or no dividend-paying growth stocks. Those are the breaks with dividend investing. But when accounting for the future dividend growth prospects of the financial services and technology sectors, and this ETF sporting a Sharpe Ratio in excess of the Russell 1000 Value Index over the past 10 years, it's clear the fund checks a lot of boxes for buy-and-hold investors. Plus, its annual expense ratio is modest at 0.08%, or $8 on a $10,000 portfolio, meaning there isn't a hefty fee chipping away at returns.Read NextJan 8, 2026 •By David DierkingThis High-Yield ETF Has Increased Payouts 11 Years Straight, and It's Still UndervaluedOct 19, 2025 •By James BrumleyWant Decades of Passive Income? Buy This ETF and Hold It Forever.Jun 29, 2025 •By Selena MaranjianDGRO Is a Popular Dividend ETF for Passive Income, but Is It the Best?Oct 29, 2024 •By George Budwell, PhD3 Top Dividend ETFs That Could Build Generation-Spanning WealthSep 1, 2024 •By James BrumleyThe Best Dividend Growth ETF to Invest $1,000 in Right NowAug 24, 2024 •By George Budwell, PhD1 Dividend Growth ETF That Can Turbocharge Your PortfolioStocks MentionediShares Trust - iShares Core Dividend Growth ETFNYSEMKT: DGRO$73.45 (0.22%) $0.17*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.