3 Dividend ETFs Expected to Gain 25% in the Next Year, According to Analysts

Dividend Stocks Set to Rise in 2026

Dividend stocks are projected to make a significant comeback in 2026, largely due to a market shift towards value and defensive stocks. After a prolonged period of lagging performance during the surge of artificial intelligence (AI), many of these stocks, along with their respective exchange-traded funds (ETFs), now show promising upside potential.

Wall Street analysts suggest that the ETFs expected to yield the highest returns over the coming year showcase a blend of strategies and sectors. According to the ETF Action database, the convergence of dividend growth, technology, and cyclical trends is likely to yield the strongest gains next year.

Here are three dividend ETFs that analysts believe could see stock price increases of at least 25%:

ProShares S&P Technology Dividend Aristocrats ETF

The ProShares S&P Technology Dividend Aristocrats ETF focuses on U.S. tech companies that have consistently increased their dividend payouts for at least seven years. Analysts are optimistic about the tech sector, although this ETF differs from traditional technology-focused funds. Leading investments include companies such as Avnet, Cognex, and Power Integration, with larger names like Apple, Applied Materials, Cisco Systems, and Texas Instruments appearing further down the roster. This ETF presents a unique position in a high-tech world with lower growth and volatility.

Capital Group Dividend Value ETF

The Capital Group Dividend Value ETF aims to achieve returns that exceed those of the S&P 500 by investing in companies that either currently pay or possess the ability to pay dividends. This ETF carries a strong emphasis on technology, with approximately 30% of its portfolio tied to this sector. Major holdings include Microsoft and Nvidia. Its strategy to generate yields that surpass the S&P 500 sets a low benchmark, but the extensive range of its investments indicates a broad potential.

WisdomTree US Quality Dividend Growth ETF

The WisdomTree US Quality Dividend Growth ETF tracks an index of large-cap U.S. companies that are noted for strong growth and high dividend yields. Similar to the previous ETFs, nearly 30% is allocated to technology. However, its distinction lies in its focus on robust metrics like future earnings forecasts and return on equity (ROE). This balance of high-quality oversight and dividend growth positions it well for both short- and long-term investment horizons.

Three Dividend ETFs with 25% Upside Potential

TDV – Technology dividend producer

CGDV – Active U.S. stocks with above-average yield

DGRW – High-quality dividend growth companies

While the tech exposure in these three dividend ETFs could be a concern, especially given the recent technology boom, valuations have dropped considerably, and earnings growth predictions remain optimistic.

Although these ETFs might not provide the same level of protection as traditional dividend yielding funds, the rationale for their expected price appreciation appears sound.