Pacer U.S. small-cap cash flow ETF hits fresh high as dividend-paying holdings draw upside calls

Traders Union
All News
Financial News
Pacer small-cap ETF at high

Highlights

Russell 2000 rises 23% in 2026, hitting a record high and outperforming the S&P 500's 13% gain, boosting small-cap sentiment.
Pacer U.S. Small Cap Cash Cows ETF (CALF) reaches a new high with holdings like Ovintiv (up 62%, 1.9% yield), AngloGold Ashanti (up 17%, 4.5% yield), and Upbound Group (up 11%, 8% yield), all offering analyst-upside and dividend income.
Upbound Group raises 2026 free cash flow outlook to $250 million from $200 million after Q2 earnings beat, with consensus price targets implying more than 45% upside.

Small-cap momentum and stock screen results

As reported by CNBC Pro, the Russell 2000 is up 23% in 2026 and touches a fresh record high on Friday, outpacing the S&P 500's gain of more than 13% this year. Within that backdrop, the Pacer U.S. Small Cap Cash Cows ETF, trading under ticker CALF, tracks 200 small-cap companies with the highest free cash flow yield and currently offers a 1.08% yield.

Using FactSet data, CNBC Pro screened CALF for stocks favored by analysts, offering upside to Wall Street price targets and paying dividends. The list includes Ovintiv, AngloGold Ashanti and Upbound Group, each combining recent share gains with income and further upside potential based on consensus targets.

Ovintiv shares are up 62% in 2026 and carry a dividend yield of 1.9%. The company posts second-quarter adjusted net income of $491 million, up 85% from a year earlier, while free cash flow of $682 million exceeds the StreetAccount consensus estimate of $595.8 million; Mizuho analyst Nitin Kumar says stronger well performance in the Permian supports higher full-year production guidance and signals scope for faster buybacks.

AngloGold Ashanti rises about 17% this year and offers a dividend yield of roughly 4.5%. Although second-quarter profit of $1.98 per share misses the FactSet consensus of $2.07, analysts expect production to lean more heavily toward the second half, and Roth Capital Partners maintains a buy rating while trimming its target price.

Analyst upside centers on cash generation and dividends

Wall Street ratings remain broadly supportive across the three names highlighted in the screen. Eight of 10 analysts covering Ovintiv rate the stock buy or overweight, and consensus price targets imply about 15% upside, while Kumar's $75 target points to roughly 19% upside from Friday's close.

For AngloGold Ashanti, more than seven of 10 analysts assign buy or overweight ratings, and consensus price targets indicate 17% upside from current levels. The outlook reflects expectations that second-half production strength can offset the modest earnings miss in the latest quarter.

Upbound Group posts the highest current dividend yield among the screened stocks at 8%. The Rent-A-Center parent is up almost 11% in 2026, and more than 15% on a total return basis including reinvested dividends, while second-quarter adjusted earnings of $1.12 per share top the FactSet consensus estimate of $1.05 and the company raises its 2026 free cash flow outlook to about $250 million from $200 million.

KeyBanc says lower loss rates help Upbound's quarterly performance, and the company keeps its full-year adjusted earnings outlook at $4.00 to $4.35 per share, compared with the FactSet consensus of $4.20. About 71% of analysts covering Upbound rate it buy or overweight, and consensus price targets suggest more than 45% upside as partnerships with Amazon and Wayfair support longer-term sales trends.

Our earlier article on a potential continuation of the U.S. equity rally highlighted a bullish scenario in which the S&P 500 could push materially higher over the next 12 months, supported by upbeat sentiment and positioning. We also noted the view that typical late-cycle warning signs—such as recession risk, sharply rising long-end yields, and peak-level FOMO—were not yet evident, while broader diversification (including a growing list of negative-beta stocks) was helping underpin the market backdrop.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.