Amidst AI Hype, Investors Might Overlook Genuine ETF Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 12 2025
0mins
Source: Benzinga
Market Opportunities Beyond AI: Analysts at Bank of America emphasize that while AI dominates headlines, there are overlooked investment opportunities in sectors like premium travel, discount retail, and resilient food producers, suggesting a balanced ETF strategy can capture diverse consumer trends.
K-Shaped Economic Recovery: The U.S. economy is exhibiting a K-shaped recovery, where some sectors thrive (like luxury spending) while others lag (like discount retail), creating opportunities for ETFs that reflect both high-end and value-oriented consumer behavior.
Premium Consumer ETFs: Companies like Viking Holdings Ltd are highlighted for their strong performance in the premium travel sector, with ETFs such as the Consumer Discretionary Select Sector SPDR Fund and Invesco Leisure and Entertainment ETF offering exposure to luxury brands.
Discount and Value-Oriented ETFs: As consumers shift towards discount stores like Dollar General amid inflation, ETFs such as the VanEck Retail ETF and Consumer Staples Select Sector SPDR Fund capture steady-demand products, providing a hedge against market volatility.
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Analyst Views on DG
Wall Street analysts forecast DG stock price to fall
16 Analyst Rating
9 Buy
7 Hold
0 Sell
Moderate Buy
Current: 147.160
Low
125.00
Averages
143.86
High
170.00
Current: 147.160
Low
125.00
Averages
143.86
High
170.00
About DG
Dollar General Corporation is a discount retailer. The Company offers merchandise, including consumable items, seasonal items, home products and apparel. Its merchandise includes brands from manufacturers, as well as its own private brand selections with prices at discounts to brands. Its consumables category includes paper and cleaning products, packaged food, perishables, snacks, health and beauty, pet, and tobacco products. Its seasonal products include holiday items, toys, batteries, small electronics, greeting cards, stationery, prepaid phones and accessories, gardening supplies, hardware, automotive and home office supplies. Its home products include kitchen supplies, cookware, small appliances, light bulbs, storage containers, frames, candles, craft supplies and kitchen, bed and bath soft goods. The Company’s apparel products include basic items for infants, toddlers, girls, boys, women and men, as well as socks, underwear, disposable diapers, shoes and accessories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dollar General Announces Q4 and Full Year 2025 Earnings Release Date
- Earnings Release Plan: Dollar General plans to release its financial results for the fiscal 2025 fourth quarter and full year on March 12, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: CEO Todd Vasos and CFO Donny Lau will host a conference call on March 12, 2026, at 8:00 a.m. CT/9:00 a.m. ET to discuss earnings results and other significant business information, aiming to bolster investor confidence in the company's future.
- Participation Instructions: Investors are advised to call (877) 407-0890 at least 10 minutes before the conference call begins, using conference ID 13758196, which underscores the company's focus on investor relations and accessibility.
- Webcast and Replay Availability: The call will be available via live webcast at https://investor.dollargeneral.com, with a replay accessible until April 9, 2026, providing multiple engagement options to cater to diverse investor needs.
See More
Discount Store Performance Signals Economic Trends
- Consumer Behavior Shift: Under financial pressure, budget-conscious consumers are opting for private-label goods, leading to increased performance for discount stores like Walmart, which reflects the strained economic conditions of households.
- Dollar Tree Customer Growth: In the most recent quarter, Dollar Tree saw an additional 3 million households visit its stores, with 60% of these new customers earning over $100,000, indicating its appeal among higher-income demographics.
- High-Income Market Expansion: More than a quarter of Dollar Tree stores opened last year were located in areas with median household incomes exceeding six figures, highlighting its strategic expansion into affluent neighborhoods to capture high-income consumer spending.
- Sales Potential Analysis: If Dollar Tree can encourage higher-income occasional shoppers to visit just one more time per year, it could result in an additional $1 billion in annual sales, demonstrating the business rationale behind targeting affluent consumers.
See More
Ares Capital Faces Dividend Pressure Amid Interest Rate Declines
- Dividend Yield Pressure: Ares Capital's forward dividend yield stands at 9.9%, yet sustaining this high yield is increasingly challenging as interest rates decline, with projected EPS dropping to $1.86 in 2025, falling short of the $1.92 dividend payout level.
- Diversified Portfolio: Currently, Ares Capital invests in 603 companies across a $29.5 billion portfolio, allocating 60.5% to first-lien secured loans and 5% to second-lien secured loans to mitigate credit risk and ensure stability amid economic fluctuations.
- Increased Market Competition: While Ares stock appears cheap at 10 times forward earnings, other blue-chip stocks like Realty Income are more attractive, owning over 15,500 commercial properties and growing faster in a declining interest rate environment.
- REITs vs. BDCs: Both REITs and BDCs must distribute at least 90% of taxable income as dividends, but REITs typically grow faster when rates decline; Realty Income's forward yield is 5.1%, with expected AFFO growth of 1%-2% to $4.25-$4.27 in 2025, comfortably covering its $3.22 dividend payout.
See More
Ares Capital's Yield Hard to Sustain, Realty Income Offers More Stability
- Yield Challenges: Ares Capital's forward dividend yield stands at 9.9%, yet sustaining this high yield is increasingly difficult as interest rates decline, with projected EPS dropping from $2.68 in 2023 to $1.86 in 2025, falling short of the $1.92 dividend payout per share.
- Portfolio Risk Management: Ares currently invests in 603 companies across its $29.5 billion portfolio, allocating 60.5% to first-lien secured loans and 5% to second-lien secured loans to mitigate credit risk; however, the performance of floating-rate loans remains sensitive to the Fed's benchmark rate.
- Realty Income's Advantages: As one of the world's largest REITs, Realty Income owns over 15,500 commercial properties, and despite some tenants facing store closures, strong tenants like 7-Eleven and Dollar General help maintain an occupancy rate above 96%, with a forward yield of 5.1%.
- Profitability Outlook: Realty expects its adjusted funds from operations (AFFO) per share to rise by 1%-2% to $4.25-$4.27 in 2025, comfortably covering its $3.22 dividend payout per share, indicating a more attractive income opportunity compared to Ares in the current market environment.
See More
Analysis of the Best Stocks in the Market
- Software Sector Turmoil: The release of a new AI tool by Anthropic has led to a nearly 30% collapse in the software sector in 2025, despite the S&P 500 nearing record highs, creating uncertainty that has driven investors to sell off software stocks en masse.
- Strong Consumer Staples Performance: As of February 9, the consumer staples sector has performed exceptionally well, rising 12.7% year-to-date, which would mark its best return since 2021 if sustained, indicating a significant capital shift from software to staples.
- Investor Flight to Safety: In light of market uncertainties, investors are gravitating towards low-risk consumer staple stocks such as food and beverages, reflecting a search for safer investment options, even as the earnings outlook for these stocks has not significantly improved.
- HALO Stocks Concept: The HALO stocks, characterized by heavy assets and low obsolescence risk, are expected to benefit from advancements in AI, positioning them as a key investment theme for 2026, as highlighted by Josh.
See More
Realty Income Increases Dividend for 112 Consecutive Quarters
- Stable Dividend Growth: Realty Income has increased its dividend for 112 consecutive quarters, demonstrating its ability to deliver stable growth across various macroeconomic environments, which is likely to continue attracting income-seeking investors.
- Strong Market Prospects: The company has a total addressable market of $8.5 trillion in Europe, indicating significant expansion potential, particularly with its investments in private capital that will further enhance its competitive position.
- UPS Cash Flow Assurance: United Parcel Service (UPS) expects to generate $6.5 billion in free cash flow in 2023, sufficient to cover $5.4 billion in dividends while also spending $3 billion on capital expenditures, showcasing its financial health and ability to maintain dividends.
- Verizon's Financial Improvement: Verizon Communications projects a 7% year-over-year increase in free cash flow to $21.5 billion in 2026, and with 19 consecutive years of dividend increases, it indicates strong growth potential following the acquisition of Frontier Communications.
See More
Dollar General Announces Q4 and Full Year 2025 Earnings Release Date
- Earnings Release Plan: Dollar General plans to release its financial results for the fiscal 2025 fourth quarter and full year on March 12, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: CEO Todd Vasos and CFO Donny Lau will host a conference call on March 12, 2026, at 8:00 a.m. CT/9:00 a.m. ET to discuss earnings results and other significant business information, aiming to bolster investor confidence in the company's future.
- Participation Instructions: Investors are advised to call (877) 407-0890 at least 10 minutes before the conference call begins, using conference ID 13758196, which underscores the company's focus on investor relations and accessibility.
- Webcast and Replay Availability: The call will be available via live webcast at https://investor.dollargeneral.com, with a replay accessible until April 9, 2026, providing multiple engagement options to cater to diverse investor needs.
See More
Discount Store Performance Signals Economic Trends
- Consumer Behavior Shift: Under financial pressure, budget-conscious consumers are opting for private-label goods, leading to increased performance for discount stores like Walmart, which reflects the strained economic conditions of households.
- Dollar Tree Customer Growth: In the most recent quarter, Dollar Tree saw an additional 3 million households visit its stores, with 60% of these new customers earning over $100,000, indicating its appeal among higher-income demographics.
- High-Income Market Expansion: More than a quarter of Dollar Tree stores opened last year were located in areas with median household incomes exceeding six figures, highlighting its strategic expansion into affluent neighborhoods to capture high-income consumer spending.
- Sales Potential Analysis: If Dollar Tree can encourage higher-income occasional shoppers to visit just one more time per year, it could result in an additional $1 billion in annual sales, demonstrating the business rationale behind targeting affluent consumers.
See More
Ares Capital Faces Dividend Pressure Amid Interest Rate Declines
- Dividend Yield Pressure: Ares Capital's forward dividend yield stands at 9.9%, yet sustaining this high yield is increasingly challenging as interest rates decline, with projected EPS dropping to $1.86 in 2025, falling short of the $1.92 dividend payout level.
- Diversified Portfolio: Currently, Ares Capital invests in 603 companies across a $29.5 billion portfolio, allocating 60.5% to first-lien secured loans and 5% to second-lien secured loans to mitigate credit risk and ensure stability amid economic fluctuations.
- Increased Market Competition: While Ares stock appears cheap at 10 times forward earnings, other blue-chip stocks like Realty Income are more attractive, owning over 15,500 commercial properties and growing faster in a declining interest rate environment.
- REITs vs. BDCs: Both REITs and BDCs must distribute at least 90% of taxable income as dividends, but REITs typically grow faster when rates decline; Realty Income's forward yield is 5.1%, with expected AFFO growth of 1%-2% to $4.25-$4.27 in 2025, comfortably covering its $3.22 dividend payout.
See More
Ares Capital's Yield Hard to Sustain, Realty Income Offers More Stability
- Yield Challenges: Ares Capital's forward dividend yield stands at 9.9%, yet sustaining this high yield is increasingly difficult as interest rates decline, with projected EPS dropping from $2.68 in 2023 to $1.86 in 2025, falling short of the $1.92 dividend payout per share.
- Portfolio Risk Management: Ares currently invests in 603 companies across its $29.5 billion portfolio, allocating 60.5% to first-lien secured loans and 5% to second-lien secured loans to mitigate credit risk; however, the performance of floating-rate loans remains sensitive to the Fed's benchmark rate.
- Realty Income's Advantages: As one of the world's largest REITs, Realty Income owns over 15,500 commercial properties, and despite some tenants facing store closures, strong tenants like 7-Eleven and Dollar General help maintain an occupancy rate above 96%, with a forward yield of 5.1%.
- Profitability Outlook: Realty expects its adjusted funds from operations (AFFO) per share to rise by 1%-2% to $4.25-$4.27 in 2025, comfortably covering its $3.22 dividend payout per share, indicating a more attractive income opportunity compared to Ares in the current market environment.
See More
Analysis of the Best Stocks in the Market
- Software Sector Turmoil: The release of a new AI tool by Anthropic has led to a nearly 30% collapse in the software sector in 2025, despite the S&P 500 nearing record highs, creating uncertainty that has driven investors to sell off software stocks en masse.
- Strong Consumer Staples Performance: As of February 9, the consumer staples sector has performed exceptionally well, rising 12.7% year-to-date, which would mark its best return since 2021 if sustained, indicating a significant capital shift from software to staples.
- Investor Flight to Safety: In light of market uncertainties, investors are gravitating towards low-risk consumer staple stocks such as food and beverages, reflecting a search for safer investment options, even as the earnings outlook for these stocks has not significantly improved.
- HALO Stocks Concept: The HALO stocks, characterized by heavy assets and low obsolescence risk, are expected to benefit from advancements in AI, positioning them as a key investment theme for 2026, as highlighted by Josh.
See More
Realty Income Increases Dividend for 112 Consecutive Quarters
- Stable Dividend Growth: Realty Income has increased its dividend for 112 consecutive quarters, demonstrating its ability to deliver stable growth across various macroeconomic environments, which is likely to continue attracting income-seeking investors.
- Strong Market Prospects: The company has a total addressable market of $8.5 trillion in Europe, indicating significant expansion potential, particularly with its investments in private capital that will further enhance its competitive position.
- UPS Cash Flow Assurance: United Parcel Service (UPS) expects to generate $6.5 billion in free cash flow in 2023, sufficient to cover $5.4 billion in dividends while also spending $3 billion on capital expenditures, showcasing its financial health and ability to maintain dividends.
- Verizon's Financial Improvement: Verizon Communications projects a 7% year-over-year increase in free cash flow to $21.5 billion in 2026, and with 19 consecutive years of dividend increases, it indicates strong growth potential following the acquisition of Frontier Communications.
See More
