# DGRO Dividend Tax Rule Explained

> Hold DGRO shares 61 days inside a 121-day window to get lower tax rate on dividends.
- Title: DGRO Dividend Tax Rule Explained · 24/7 Wall St. | Shortify
- Summary: Hold DGRO shares 61 days inside a 121-day window to get lower tax rate on dividends. DGRO dividends qualify for lower tax rates only if held 61 days within a…
- Keywords: dgro, dividend, tax, holding period, ex-dividend date, irs publication 550, etf, Rule, Explained, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/investing/etf/2026/10/16/dgros-dividend-only-gets-the-lower-tax-rate-if-you-hold-it-61-days-inside-a-121-day-window
- Author: Ryne Mauck
- Published: 2026-10-16T23:03:34+00:00
- Read time: 1 min
- Topics: dgro, dividend, tax, holding period, ex-dividend date, irs publication 550, etf
## Tax Rule for DGRO Dividends
DGRO dividends get taxed at lower rates only if held 61 days inside a 121-day window starting 60 days before ex-dividend date.

> You must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date
## Holding Period Details
Counting starts from purchase date and ends at sale date; include the day sold but not the day bought.

> When counting the number of days you held the stock, include the day you disposed of the stock, but not the day you acquired it
## DGRO's Tax Window
DGRO pays quarterly dividends with ex-dividend dates every 3 months; window opens 60 days before ex-dividend date.

> The latest dividend was $0.384996 per share, with an ex-dividend date of September 15, 2026
## Holding Period Scenarios
Long-term holders clear the test easily; late buyers and round-trippers may fail the 61-day requirement.

> You have no qualified dividends from XYZ Corp. for 2025 because you held the XYZ stock for less than 61 days
## DGRO vs Other ETFs
DGRO outperformed SCHD and VIG over 10 years with 265.94% returns versus 255.92% and 245.75% respectively.

> Over the year through October 15, 2026, SCHD returned 31.78%, DGRO 17.68%, and VIG 13.33%
## Who Needs to Track
Dividend-capture traders, swing traders, and option hedgers must track holding periods against ex-dividend dates.

> If you fit that second group, check both your purchase date and your sale date against each ex-dividend date
## Tax Implications
Failing the holding test moves dividends from qualified to ordinary income tax rates.

> The difference between them, applied to each payment, is the cost the factsheet never shows you
## Key takeaway

DGRO dividends qualify for lower tax rates only if held 61 days within a 121-day window starting 60 days before ex-dividend date.