3 Undervalued Dividend ETFs With Over 50% Upside Potential
247Wallst·2026-01-20 15:21

Group 1: Investment Opportunities in Dividend ETFs - The current market conditions present an ideal opportunity to invest in undervalued dividend ETFs with significant upside potential, specifically highlighting Amplify CWP International Enhanced Dividend Income ETF (IDVO), VanEck Energy Income ETF (EINC), and VanEck Natural Resources ETF (HAP) [1][2] - The Federal Reserve is under pressure to lower interest rates, which could lead to rates at or below 3%, making higher-yielding assets more attractive for income and capital gains [2][4] - IDVO has shown a 21% increase over the past six months, alongside a 5% dividend yield, indicating strong performance potential [5] Group 2: Sector Analysis - The U.S. is transitioning from a major importer to a manufacturing powerhouse, which may significantly reduce the trade deficit and enhance the competitiveness of U.S. exports [3][4] - The energy sector is experiencing a resurgence, with the U.S. becoming Europe's largest energy supplier, driven by geopolitical events and a renewed reliance on oil [7][8] - EINC offers a 4.41% dividend yield and is positioned to benefit from potential oil shocks or increased access to Venezuelan oil reserves, with a possible 50% upside [9] - HAP, focusing on hard assets, has gained 23% in the past six months and is expected to benefit from rising commodity prices, with a current dividend yield of 2.1% [10][11]