Dividend Stability and Growth in Core U.S. Equity ETFs: Evaluating DFAC's Strategic Value
For income-focused investors, dividend stability and growth are critical metrics when evaluating core U.S. equity ETFs. The Dimensional U.S. Core Equity 2 ETF (DFAC) has recently drawn attention with its $0.1057 per share dividend, declared on January 10, 2025, and scheduled for payment on September 25, 2025 [4]. This payout reflects a 9.63% year-over-year increase in its trailing twelve-month (TTM) dividend per share, which stands at $0.38 as of June 2025 [2]. While DFAC's dividend yield of approximately 1.03% [4] lags behind some peers, its robust compound annual growth rate (CAGR) of 13.61% over five years positions it as a compelling option for investors prioritizing long-term dividend expansion [1].
DFAC's Dividend Performance: Growth vs. Yield
DFAC's dividend trajectory underscores its focus on capital appreciation over immediate income. From 2022 to 2024, annual dividends per share fluctuated between $0.35 and $0.36, but the TTM figure of $0.38 as of June 2025 marks a 9.63% increase [2]. This growth outpaces the 5-year CAGR of 5.81% for the iShares Core S&P 500 ETF (IVV) [2] and rivals the 10.77% average growth rate of the Vanguard Dividend Appreciation ETF (VIG) [3]. However, DFAC's yield remains modest compared to the Schwab U.S. Dividend Equity ETF (SCHD), which offers a TTM yield of 3.71% [1], and the SPDR S&P 500 ETF Trust (SPY), with a TTM yield of 1.09% [2].
The disparity in yields reflects differing investment philosophies. DFACDFAC--, managed by Dimensional Fund Advisors, emphasizes exposure to a broad range of U.S. equities, including smaller-cap stocks, which may prioritize reinvestment over immediate payouts [4]. In contrast, SCHD targets high-dividend-paying stocks, while SPY and IVV track the S&P 500, which includes a mix of growth and income-oriented firms.
Cost Efficiency and Competitive Landscape
DFAC's 0.17% expense ratio [4] is higher than SPY's 0.09% and IVV's 0.03%, which may deter cost-sensitive investors [2]. However, its 13.61% 5-year dividend CAGR [1] outperforms SPY's 5.20% [3] and IVV's 5.81% [2], suggesting stronger long-term potential for income growth. For context, SCHD's 9.82% 10-year CAGR [2] and VIG's 10.77% average growth rate [3] highlight the competitive landscape, where DFAC's growth-oriented strategy differentiates it from yield-focused alternatives.
Strategic Value for Income Investors
The strategic value of DFAC hinges on investor priorities. For those prioritizing dividend growth, DFAC's 13.61% CAGR [1] and consistent quarterly payouts (e.g., $0.1061 in June 2025 [2]) make it an attractive choice. However, investors seeking current income may prefer SCHD's 3.71% yield [1] or SPY's 1.09% [2], albeit with potentially lower growth.
Risk tolerance also plays a role. DFAC's dividend volatility—quarterly payouts have ranged from $0.0594 to $0.12 since 2022 [3]—may appeal to investors comfortable with short-term fluctuations in exchange for long-term growth. Conversely, VIG's stable yield (1.55%–1.88% over 2020–2023 [1]) suits conservative income seekers.
Conclusion
The Dimensional U.S. Core Equity 2 ETF's recent $0.1057 dividend underscores its commitment to dividend growth, with a 13.61% 5-year CAGR [1] outpacing major peers. While its yield of 1.03% [4] is modest, its strategic value lies in its balance of growth potential and broad market exposure. For investors prioritizing long-term income expansion over immediate payouts, DFAC offers a compelling case. However, those prioritizing current yield or cost efficiency may find alternatives like SCHD or SPY more suitable. Ultimately, DFAC's role in a diversified portfolio depends on aligning its strengths with individual financial goals.
Comentarios
Aún no hay comentarios