A couple of years ago, we started playing with the massive amounts of data that MarketBeat takes in everyday trying to figure out if there was a way to identify short term trading wins.
By analyzing earnings data, news sentiment, analyst recommendations, insider transactions and dozens of other data points, we think we’ve found an algorithm that finds interesting short-term stock ideas.
We call that algorithm the IdeaEngine and its stock ideas are published on MarketBeat All Access every Monday morning.
We make one IdeaEngine idea available free every Monday as an SMS alert. We’ll be releasing the next IdeaEngine alert on Monday morning, so make sure you are signed up before then.
Get MarketBeat’s Free Weekly IdeaEngine Stock Picks Here
William Bushee
MarketBeat
P.S. The IdeaEngine has had some good stock ideas recently, but it’s just an algorithm. It’s not always right and it should be only part of your research process. Remember that stock investing and trading involves risk and you should always consult with a competent financial professional before making investment decisions. Read our full terms of service here.
These 2 Dividend ETFs Could Shine if Rate Cuts Hit Again in 2026
Submitted by Jordan Chussler. Originally Published: 2/16/2026.
Key Points
- Interest rate cuts and Kevin Warsh’s potential "dovish" Fed leadership are driving income investors away from bonds toward high-yield equities.
- Popular ETFs like JEPI and SPYI offer massive yields but often lack the long-term share price growth found in other dividend-focused funds.
- The SCHD and the VIG provide reliable income and capital appreciation, with both outperforming the S&P 500 so far in 2026.
- Special Report: [Sponsorship-Ad-6-Format3]
With the Federal Reserve having initiated rate cuts in each of the past two years—and the market pricing in the likelihood of additional cuts later in 2026, according to CME Group's FedWatch Tool—income investors are likely to continue turning to equities to generate meaningful yield.
The Fed's benchmark—the effective federal funds rate—is currently 3.64%, its lowest level since fall 2022. If President Trump's next Fed chair nominee, Kevin Warsh, proves dovish on interest rates, fixed income could face further pressure.
Have $500? Invest in Elon's AI Masterplan (Ad)
What if you could claim a stake in what's set to be the biggest IPO ever… starting with just $500?
Everyone is talking about Elon Musk's SpaceX IPO.
For investors positioning ahead of potential rate cuts, dividend-growth exchange-traded funds (ETFs) can play a key role in producing reliable—and rising—income that helps offset persistent inflation and complements a broader dividend portfolio made up of individual stocks.
Not All Dividend ETFs Are Created Equal
Income investors are likely familiar with funds such as the JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) and the NEOS S&P 500 High Income ETF (BATS: SPYI). Both have grown popular in dividend-focused portfolios for their sizable yields and monthly distributions.
The JEPI currently yields 8.02%, or about $4.73 per share annually, while the SPYI yields an eye-catching 11.79%, or roughly $6.15 per share annually.
However, both funds place less emphasis on dividend growth and share appreciation. Since its May 2020 inception, JEPI has traded mostly between $50 and $63.19. NEOS's SPYI has ranged between $43.59 and $52.68 since its September 2022 debut.
For investors seeking dependable dividend growth along with appreciation potential, the Schwab US Dividend Equity ETF (NYSEARCA: SCHD) and the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) are strong contenders.
Both funds focus on companies with stable, growing cash flows, which tends to reduce volatility. Since their launches, SCHD has returned more than 269% and VIG nearly 353% (SCHD debuted in October 2011; VIG in April 2006).
Below is a closer look at each ETF and how they appeal to yield-focused investors.
SCHD: A Basket of Defensive Sector Stocks With Strong Track Records
SCHD is one of Charles Schwab's flagship ETFs, designed to give investors exposure to high-quality U.S. companies with a history of paying dividends. The fund tracks the Dow Jones U.S. Dividend 100 Index, composed of 100 high-dividend U.S. companies.
In recent years SCHD has delivered solid performance, supported by healthy revenue and earnings growth from its high dividend-paying holdings, which mirror its benchmark.
So far in 2026, SCHD has posted a year-to-date (YTD) gain of more than 13%, while the S&P 500 is down about 0.37% YTD. That outperformance has been driven in part by investors' flight to safety: as tech stocks—particularly software names—have sold off, SCHD's sector mix has rewarded shareholders.
The fund's largest allocation is to energy (20.3%), the sector leading the market this year, followed by consumer staples (18.5%), health care (15.5%), and consumer discretionary (10.4%). Technology accounts for 10.2% of the ETF's weight—one reason SCHD has outperformed in the early part of the year.
Reflecting investor interest, the fund's short interest is just 0.17% of the float. Meanwhile, institutional investors have contributed $11.65 billion in inflows over the past 12 months, compared with $4.75 billion in outflows.
Performance aside, dividends are a primary draw. SCHD currently yields 3.32%, or about $1.04 per share annually.
VIG: Dividend Growth With a Side of Tech Exposure
Defensive sectors have lifted parts of the market in early 2026, but that strength has come at the expense of technology. For income investors who also want exposure to a potential tech rebound, VIG may be appealing.
Because of its sizable technology allocation (25.5%), Vanguard's dividend-appreciation fund has gained just over 2% YTD. With two Magnificent Seven stocks and Broadcom (NASDAQ: AVGO) among its top five holdings, VIG stands to regain ground when tech recovers.
Until then, the ETF's exposure to financials (21.9%), health care (16.6%), and industrials (10.4%)—the market's fourth-best performing sector YTD—helps offset tech's weakness.
The fund's dividend currently yields 1.57%, or roughly $3.55 per share annually. Its short interest is 0.04%, lower than SCHD's, and institutional investors have put $15.66 billion into the fund over the past year versus $10.5 billion in outflows.
Beyond the Box: How FedEx Is Winning as Tech Slumps
Author: Jeffrey Neal Johnson. Posted: 2/20/2026.
Key Points
- The planned separation of the freight business is expected to unlock significant shareholder value by removing the conglomerate discount.
- Network integration and fleet modernization are driving structural cost reductions while improving operational efficiency across the board.
- A strategic acquisition in Europe is positioning the company to capture global e-commerce growth through a vast network of automated parcel lockers.
- Special Report: [Sponsorship-Ad-6-Format3]
The winter of 2026 has brought a distinct chill to the technology sector, with investors increasingly questioning the sky-high valuations of software and artificial intelligence (AI) companies. Yet inside this Software-mageddon, a different kind of giant is heating up. On Feb. 17, 2026, FedEx Corporation (NYSE: FDX) reached a new intraday high of $381.99, signaling a decisive shift in market sentiment.
Investors should see this as more than a random fluctuation. Over the past 30 days, FedEx's stock price has gained more than 21%, diverging from the broader transportation index and leaving its primary rival, United Parcel Service (NYSE: UPS), behind. This divergence reflects a flight to quality — a rotation of capital from speculative tech into industrial companies with tangible assets, visible cash flows and concrete plans to unlock shareholder value. The market appears to be betting that FedEx's ambitious restructuring is no longer just a PowerPoint — it's starting to show up in the company's results.
The June Catalyst: Why Two Stocks Are Better Than One
Have $500? Invest in Elon's AI Masterplan (Ad)
What if you could claim a stake in what's set to be the biggest IPO ever… starting with just $500?
Everyone is talking about Elon Musk's SpaceX IPO.
The most immediate fuel for this rally is financial engineering. FedEx has confirmed it will spin off its Less-Than-Truckload (LTL) unit, FedEx Freight, into a standalone public company. The transaction is scheduled to be executed on June 1, 2026.
For years investors have argued FedEx suffered from a conglomerate discount — the whole trading for less than the sum of its parts. FedEx Freight is a higher-margin business, generating roughly $8.9 billion in revenue in fiscal 2025. By separating the businesses, the market can value the freight unit like a premium trucking carrier (which typically trades at higher multiples) and the parcel operation like a focused logistics operator.
The spin-off will be a tax-free distribution of shares, so existing FedEx shareholders will soon own stakes in two distinct companies: the legacy FedEx Corp and the newly listed FDXF on the NYSE. To reinforce the separation, FedEx has named seasoned executives to lead the new firm, with R. Brad Martin as chairman and John A. Smith as CEO. That clarity removes a major layer of uncertainty and gives institutional investors confidence to buy.
Cutting Costs, Not Corners: Network 2.0 and the Air Overhaul
While the spin-off unlocks financial value, FedEx's DRIVE program is actively overhauling operations. Management says it is on track to deliver $1 billion in permanent cost reductions this fiscal year.
The cornerstone of that effort is Network 2.0. Historically, FedEx ran two parallel networks — Express (air) and Ground — which sometimes meant two FedEx drivers visiting the same office park on the same day. Network 2.0 merges these into a single surface logistics system. The company is closing redundant facilities, targeting more than 475 station closures by 2027. We're seeing that in real time: FedEx confirmed closures of its Ship Center in Bloomington, Indiana (effective Feb. 28, 2026) and another in Springfield, Missouri (effective March 28, 2026). Those moves demonstrate the strategy is being implemented and immediately reducing overhead.
At the same time, FedEx is redefining its air network with a Tricolor design:
- Purple: Owned jets flying overnight for high-priority packages.
- Orange: Owned jets flying during the day (off-cycle) for deferred freight.
- White: Partner capacity for lower-yield volumes.
FedEx is also taking a different path than UPS on fleet utilization. While UPS recently retired its MD-11 aircraft, FedEx plans to return its grounded MD-11 fleet to service by May 31, 2026. The MD-11 offers significant cargo density; by using them on the Orange daytime network, FedEx can move heavy, less-urgent freight cheaply without clogging the premium overnight Purple network. It's an asset-utilization play rather than a pure speed play.
Playing Offense: Solving the Europe Puzzle and Beating UPS
The gap between FedEx and UPS has arguably never been wider. In the most recent quarter, FedEx grew revenue by 6.8% while UPS saw revenue decline 3.3%. UPS is currently in a shrink-to-grow phase, cutting about 12,000 management positions to protect margins.
FedEx, by contrast, is trimming structural inefficiencies while taking market share in premium segments.
That aggression is most visible in Europe. Traditionally, FedEx struggled with profitable residential deliveries in Europe because of high labor and fuel costs. The response was a consortium-led acquisition of InPost S.A., valuing the company at €7.8 billion ($9.2 billion).
This deal is a practical solution for last-mile economics. InPost operates more than 60,000 automated parcel lockers across Europe. Delivering 50 packages to a single locker bank is far cheaper than driving a van to 50 different homes. By acquiring a 37% stake and integrating that network, FedEx sidesteps costly doorstep delivery, neutralizes some of Amazon's (NASDAQ: AMZN) infrastructure advantage in the region, and offers a low-cost delivery option many European consumers prefer.
A Defensive Growth Fortress
Even trading at record highs, FedEx doesn't look expensive against its growth runway. The stock trades at a forward price-to-earnings ratio (P/E) of about 20.7x, attractive next to the 30x–40x multiples common in tech. Wall Street is catching up: Jefferies raised its price target to $425 and Wells Fargo to $430, suggesting further upside.
Investors should still weigh risks. The pilots' contract negotiations remain in federal mediation, and global trade developments — notably the potential removal of the de minimis exemption for Chinese imports — create roughly a $150 million headwind. FedEx has been mitigating these issues by shifting capacity toward Southeast Asia and Europe.
Ultimately, FedEx has moved from a cyclical barometer of the economy to a self-help story of structural transformation. With the June spin-off serving as a near-term catalyst and Network 2.0 driving margin expansion, FDX combines industrial resilience with growth-equity upside. In a market wary of AI bubbles, FedEx is delivering what many investors want: real profits, real assets and a clear roadmap to value.
We empower individual investors to make better investment decisions by providing real-time financial information and unbiased market analysis.
This message is a sponsored email for MarketBeat Alerts, a third-party advertiser of MarketBeat. Why did I receive this email message?.
If you need assistance with your subscription, please email our U.S. based support team at contact@marketbeat.com.
If you would like to unsubscribe or change which emails you receive, you can manage your mailing preferences or unsubscribe from these emails.
© 2006-2026 MarketBeat Media, LLC. All rights reserved.
345 N Reid Pl. #620, Sioux Falls, South Dakota 57103. USA..
No comments:
Post a Comment