5 Best Performing Dividend ETFs in 2022

In this article, we discuss 5 best performing dividend ETFs in 2022. If you want to see more ETFs in this selection, check out 10 Best Performing Dividend ETFs in 2022. 

5. Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV)

YTD Share Price Gain as of December 12: 5.92%

Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV) tracks the performance based on the S&P 900 Dividend Revenue-Weighted Index. The fund invests at least 90% of its total assets in securities that comprise the index. Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV) offers a 30-day SEC yield of 3.97% as of December 9 and the average market cap stood at $56 billion. The fund charges an expense ratio of 0.39% and it holds 62 equities in its portfolio. 

Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV)’s largest holding is Best Buy Co., Inc. (NYSE:BBY), an American company that retails technology products in the United States and Canada. On November 22, Best Buy Co., Inc. (NYSE:BBY) declared a $0.88 per share quarterly dividend, in line with previous. The dividend is payable on January 3, 2023 to shareholders of record on December 13, 2022. The dividend yield on December 12 came in at 4.27%. The company has consistently raised its dividends for the last 18 years. 

According to Insider Monkey’s Q3 data, 31 hedge funds held stakes in Best Buy Co., Inc. (NYSE:BBY), compared to 26 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group held a significant position in the company, consisting of 1.3 million shares worth $83.2 million.

4. Alerian MLP ETF (NYSE:AMLP)

YTD Share Price Gain as of December 12: 11.64%

Alerian MLP ETF (NYSE:AMLP) seeks investment results that correspond generally to the price and yield performance of its underlying benchmark, the Alerian MLP Infrastructure Index. The underlying index provides a capped, float-adjusted, capitalization-weighted composite of energy infrastructure Master Limited Partnerships (MLPs) that generate most of their cash flow from midstream activities. The fund was established in 2010 and the net assets as of December 9 came in at nearly $6.2 billion. The total expense ratio stood at 0.87%. Alerian MLP ETF (NYSE:AMLP)’s dividend yield on December 12 was 8.13%. 

Energy Transfer LP (NYSE:ET), a Texas-based energy infrastructure company that provides natural gas transportation pipelines and natural gas storage facilities, features as the largest holding of Alerian MLP ETF (NYSE:AMLP). On October 25, Energy Transfer LP (NYSE:ET) declared a $0.265 per share quarterly dividend, a 15.2% increase from its prior dividend of $0.230. The dividend was paid to shareholders on November 21. As of December 12, Energy Transfer LP (NYSE:ET)’s dividend yield came in at 9.09%, whereas the average yield of the energy sector is 4.24%. 

According to Insider Monkey’s third quarter database, Energy Transfer LP (NYSE:ET) was part of 33 hedge fund portfolios, compared to 36 in the prior quarter. David Abrams’ Abrams Capital Management held the largest position in the company, with 22 million shares worth $242.8 million. 

Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:

“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”

3. VanEck Energy Income ETF (NYSE:EINC)

YTD Share Price Gain as of December 12: 13.72%

VanEck Energy Income ETF (NYSE:EINC) seeks to replicate the price and yield performance of the MVIS North America Energy Infrastructure Index, which covers North American companies involved in the midstream energy segment. The fund was established in 2012 and offers a 30-day SEC yield of 4.47% as of December 9. The total net assets came in at $31.4 million and VanEck Energy Income ETF (NYSE:EINC) delivers an expense ratio of 0.46%. VanEck Energy Income ETF (NYSE:EINC) has 29 stocks in its portfolio and it is one of the best performing dividend ETFs this year. 

Enbridge Inc. (NYSE:ENB) is the largest holding of VanEck Energy Income ETF (NYSE:EINC). It is a Canadian energy infrastructure company that operates through five segments – Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. On November 30, Enbridge Inc. (NYSE:ENB) declared a C$0.8875 per share quarterly dividend, a 3.2% increase from its prior dividend of C$0.86. The dividend is payable on March 1, 2023 to shareholders of record on February 15. The dividend yield on December 12 came in at 6.73%. 

According to Insider Monkey’s Q3 data, Enbridge Inc. (NYSE:ENB) was part of 24 hedge fund portfolios, compared to 25 in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 56.2 million shares worth over $2 billion. 

Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:

“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”

2. Global X MLP ETF (NYSE:MLPA)

YTD Share Price Gain as of December 12: 13.75%

Global X MLP ETF (NYSE:MLPA) seeks to provide investment results that correspond generally to the price and yield performance of the Solactive MLP Infrastructure Index. Global X MLP ETF (NYSE:MLPA)’s expense ratio is over 15% less than the competitor average. The fund was established in 2012 and has net assets of $1.29 billion, with an expense ratio of 0.45%. Global X MLP ETF (NYSE:MLPA) has 20 stocks in its portfolio. 

Enterprise Products Partners L.P. (NYSE:EPD) is the biggest holding of the Global X MLP ETF (NYSE:MLPA). It is a Texas-based company that provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, petrochemicals, and refined products. The company reported a Q3 GAAP EPS of $0.62 and a revenue of $15.46 billion, topping analysts’ estimates by $0.01 and $1.64 billion, respectively. 

According to Insider Monkey’s data, Enterprise Products Partners L.P. (NYSE:EPD) was part of 21 hedge fund portfolios at the end of Q3 2022, compared to 23 in the prior quarter. Bruce Berkowitz’s Fairholme (FAIRX) held the leading position in the company, comprising 3.8 million shares worth $92.3 million. 

Here is what Fairholme Capital Management specifically said about Enterprise Products Partners L.P. (NYSE:EPD) in its Q2 2022 investor letter:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, and oil. These hydrocarbons are critical for modern life and have few, if any, ready substitutes. Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than nine times distributable cash flows and pays a 7.5% cash distribution.”

1. InfraCap MLP ETF (NYSE:AMZA)

YTD Share Price Gain as of December 12: 16.40%

InfraCap MLP ETF (NYSE:AMZA) is an actively managed fund that invests in midstream MLPs that collect, process, store, and transport energy products. The segment benchmark index is MSCI USA IMI / Oil & Gas Storage & Transportation. The fund was launched in 2014 and offers an expense ratio of 1.40%, with a concentrated portfolio of 28 MLPs. InfraCap MLP ETF (NYSE:AMZA) has a distribution yield of 7.24% and it is one of the best performing ETFs in 2022, with shares up over 16% year-to-date as of December 12. 

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