This ETF No One Talks About Has Grown Its Dividend 38% in 3 Years

There are plenty of dividend-paying exchange traded funds (ETFs) out there, but only a handful of them truly stand out from the rest. Sometimes, investors have to wade through a sea of funds to find a dividend ETF that deserves their consideration.

I’ve already done the digging on your behalf and unearthed a fund that’s largely flown under the radar. It’s an ETF with a remarkable recent track record of hiking its dividend payouts.

Yet, interestingly enough, this fund isn’t specifically touted as a dividend growth ETF. Nonetheless, it’s a worthy fund for passive income seeking investors in 2026, so I’ll reveal it to you right now.

CGDV: “Value” Refined

Today’s featured fund is one that you might never have heard about before: the Capital Group Dividend Value ETF (NYSEARCA:CGDV | CGDV Price Prediction). Certainly, this one doesn’t generate a lot of buzz in financial social media.

On the fund’s web page, the CGDV ETF is described as “‘Value’ refined.” The primary focus of the Capital Group Dividend Value ETF doesn’t seem to be value investing, though.

According to the web page, the CGDV ETF seeks to “produce consistent income that exceeds the average yield of the S&P 500.” Furthermore, the fund does this by “focusing on companies that pay dividends or have the potential to pay dividends.”

To be clear, some of the stocks on CGDV’s holdings list pay meager dividends; a couple of examples are Meta Platforms (NASDAQ:META) and NVIDIA (NASDAQ:NVDA). Others, such as RTX (NYSE:RTX) and Royal Caribbean Cruises (NYSE:RCL), pay decent dividends.

Since its holdings list represents 53 companies/issuers, the Capital Group Dividend Value ETF has a fair measure of diversification. The fund deducts a 0.33% annualized expense ratio from the share price, which would equate to $0.33 per year for every $100 invested in the CGDV ETF.

Thus, the Capital Group Dividend Value ETF is respectable but not outstanding in terms of wide diversification and low expenses. So far, it seems like an unexceptional dividend-paying fund — but then, we haven’t uncovered all of the facts quite yet.

What’s Remarkable About CGDV?

At this point, you might wonder what’s so remarkable about the CGDV ETF. It’s not a deep value fund, and it’s not extremely diversified. Moreover, it currently features a 12-month distribution rate of 1.26%, which is a pretty good yield but it’s not mind-blowing.

What sets the Capital Group Dividend Value ETF apart is a fascinating fact. As we’ll discover, the CGDV ETF has a startling recent track record of dividend raises (in dollar terms, not percentage yield terms).

Here’s the breakdown. In December of 2023, the Capital Group Dividend Value ETF distributed a quarterly per-share dividend payment of $0.139. Fast-forward to December of 2025, and the CGDV ETF paid out a distribution of $0.193 per share.

When we crunch the numbers, this equates to a dividend increase of 38% to 39% in three years’ time. If that pattern were to persist, shareholders of the Capital Group Dividend Value ETF might envision dividend raises exceeding 10% per year.

Certainly, we can’t assume that the Capital Group Dividend Value ETF’s recent pattern of dividend hikes will continue into the future. At the very least, though, we can conclude that the CGDV ETF is on a powerful dividend growth trajectory.

Not Hidden Anymore

So now, the secret is revealed and the Capital Group Dividend Value ETF isn’t a hidden gem anymore. You’re privy to the fascinating facts about the CGDV ETF’s dividend growth history — but is this knowledge actionable?

For some of you, it will be. If your primary focus is rock-bottom expense ratios or ultra-wide diversification, then the CGDV ETF probably won’t check all of your boxes.

That said, it’s still worth your time and effort to learn about the Capital Group Dividend Value ETF. As you can see, it’s been a good performer as the CGDV ETF’s share price has gained 89% over the past five years.

That’s a commendable result, and it doesn’t even include the Capital Group Dividend Value ETF’s dividend distributions. Perhaps best of all, the CGDV ETF might continue to raise its dividend payments and thereby provide excellent wealth-building opportunities.

Consequently, investors ought to consider purchasing a few shares the Capital Group Dividend Value ETF. It’s not the most talked-about fund in the world, but in light of the CGDV ETF’s dividend growth pattern, it could be a superstar in the making.