Midcap stocks are suddenly outperforming – and investors interested in their growth prospects might find a few good dividend payers too. The SPDR S & P Midcap 400 ETF (MDY) just scored its fifth straight winning week. The fund is off to a solid start this week, up 4% over the past two days, after the U.S. and China agreed to suspen higher tariffs for 90 days . Accords on tariffs, like the one reached with the United Kingdom and potentially in the works with China, bode well for smaller companies, which tend to be particularly sensitive to the domestic economy compared to their larger counterparts. “We’re engaging with companies that are exposed to tariffs to understand their contingency plans,” said Janus Henderson midcap portfolio manager Brian Demain in a recent article . “Many companies are implementing easier fixes they can make quickly, even though they come with cost headwinds,” he added. Some economists on Wall Street are also starting to dial back their recession odds as the U.S. paves the way for agreements with trading partners. Goldman Sachs, for example, cut back its 12-month recession forecast to 35% from 45% following the tentative deal with Beijing. Investors hoping to capitalize on this potential tailwind for midcaps and scoop up some income at the same time may be interested in the Proshares S & P MidCap 400 Dividend Aristocrats ETF (REGL) . The ETF is up 6.6% in the past month, including reinvested dividends, according to FactSet data, and its constituents include companies that have grown dividends for at least the past 15 years. CNBC Pro used FactSet data to screen inside the REGL ETF for stocks that meet the following criteria: A dividend yield of at least 1.5%. Buy ratings from at least 51% of the analysts covering them. At least 10% upside based on consensus price targets. Here are the names we found. UMB Financial Corp made the cut. The company is rated buy or overweight by nearly 73% of the analysts covering the stock, and consensus price targets call for nearly 12% upside from current levels. Shares are down about 4%, and the stock has a dividend yield of 1.5%. Truist Financial analyst Brian Foran rated UMB a buy in a report on Monday, noting, “They are a bank with strongholds in niche fee areas, diverse geographic and sector exposures, and peer-leading fee and [loan-to-deposit] ratios.” Earlier this year, UMB closed on its acquisition of Heartland Financial, a move that boosted its total assets by more than 30%, to about $68 billion. “Heartland’s relative strength in the consumer segment such as mortgages and cards will help diversify the balance sheet, and UMB’s system & scale help these areas grow more effectively,” Foran added. Reinsurance Group of America is also showed up on the screen. In all, about 77% of the analysts covering the name rate it the equivalent of buy, with consensus price targets calling for upside of nearly 16%. Shares are down roughly 3% in 2025, and the stock pays a dividend yield of 1.7%. Piper Sandler analyst John Barnidge stuck with his overweight rating on the stock after RGA posted first quarter operating income of $5.66 per share, topping the FactSet consensus call for $5.31 per share. “This is one of the rare names in lifecoland where we have stability in earnings this quarter, which we find very much to be RGA-specific as the traditional business grows greater than expected and continues to deliver favorable claims experience,” he said. As a reinsurer, RGA essentially “backs” other insurance companies, providing coverage to help transfer mortality and morbidity risk. “1Q25 demonstrated the mortality-as-a-service flywheel is not just intact but has led to stronger top-line growth in the higher multiple traditional mortality business,” Barnidge added. Finally, Essential Utilities turned up on CNBC’s list. The company provides drinking water, wastewater treatment infrastructure and natural gas. Shares are up about 3% this year, and the company offers a dividend yield of 3.5%. Essential Utilities on Monday posted first-quarter earnings of $1.03 per share on revenue of $784 million, encouraging Janney Montgomery Scott analyst Michael Gaugler to reiterate a buy rating. “Contributing to the 7.5% increase in water revenues and ~46% increase in natural gas sales were the following: additional revenues from regulatory recoveries, purchased gas costs and higher natural gas volumes,” he said in a Monday report. Gaugler added that there have been several data center announcements for facilities to be located within Essential Utilities’ natural gas service territory in western Pennsylvania. “All in, it looks like positive momentum building in terms of earnings and future capex opportunities,” he said. Other stocks that appeared in CNBC Pro’s screen included Equity LifeStyle Properties , Prosperity Bancshares and Unum Group . —CNBC’s Fred Imbert contributed reporting.
