Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Best Performing Dividend ETFs in 2022

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

Investing in dividends, especially those that increase on a year-over-year basis, can contribute meaningfully to long-term portfolio returns in a volatile market. Market uncertainty, paired with growing recession fears and a declining macroeconomic outlook, has investors running towards safe haven assets and defensive strategies to protect their portfolios and seek upside potential. Individuals who have long investing horizons and are risk averse gravitate towards dividend stocks, as these offer cumulative growth since the earnings can be reinvested in the portfolio. Nick Lentini of the Morgan Stanley Equity Strategy team said on November 9:

“The investing backdrop of the past year, driven by macroeconomic conditions and combined with the rising risk of recession, has fueled outperformance for many dividend-paying stocks.”

Energy, Packaged Food, Beverages and Household Products, Utilities, and Banks are some of the sectors providing attractive yields and dividend growth opportunities despite the pressured economic environment. Cash flows from dividend payments are a significant source of income and return for investors. Those who wish to protect themselves against the challenging macro backdrop can look out for dividend ETFs, which offer exposure to some of the best income stocks like Enbridge Inc. (NYSE:ENB), Best Buy Co., Inc. (NYSE:BBY), and Energy Transfer L.P. (NYSE:ET). 

Our Methodology 

We selected the following dividend ETFs based on positive share price gains year-to-date as of December 9. These exchange traded funds were ranked according to their share price gains. We have discussed these ETFs in terms of their largest holdings, net assets, expense ratios, and benchmark indices.

Photo by Jp Valery on Unsplash

Best Performing Dividend ETFs in 2022

10. Touchstone Dividend Select ETF (NYSE:DVND)

YTD Share Price Gain as of December 12: 3.36%

Touchstone Dividend Select ETF (NYSE:DVND) seeks current income and capital appreciation by choosing US large-cap companies with competitive advantages that offer reliable, increasing dividends at attractive valuations. The fund tracks the investment results of the MSCI USA Large Cap Index, with $26.91 million in assets under management and an expense ratio of 0.67%. Touchstone Dividend Select ETF (NYSE:DVND) has 52 holdings in its portfolio. It is an open ended fund that primarily invests in Electronic Technology, Finance, Consumer Services, Technology Services, Retail Trade, Health Technology, and Consumer Non-Durables sectors, among others. 

Microsoft Corporation (NASDAQ:MSFT) is a significant holding of Touchstone Dividend Select ETF (NYSE:DVND). On November 30, Microsoft Corporation (NASDAQ:MSFT) declared a quarterly dividend of $0.68 per share, in line with previous. The dividend is payable on March 9, 2023 to shareholders of record on February 16, 2023. The dividend yield on December 12 came in at 1.09%. 

According to Insider Monkey’s data, Microsoft Corporation (NASDAQ:MSFT) was part of 269 hedge fund portfolios at the end of Q3 2022, compared to 258 in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest position holder in the company, with 39.2 million shares worth $9.14 billion. 

Like Enbridge Inc. (NYSE:ENB), Best Buy Co., Inc. (NYSE:BBY), and Energy Transfer L.P. (NYSE:ET), Microsoft Corporation (NASDAQ:MSFT) is one of the top dividend stocks backed by elite hedge funds. 

Diamond Hill made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q3 2022 investor letter:

“Also among our bottom contributors were media and technology giant Alphabet, software and IT services provider Microsoft Corporation (NASDAQ:MSFT) and insurance company American International Group (AIG). Microsoft shares declined in Q3, along with other tech companies, as rising interest rates impacted the near-term outlook. We expect the business to continue to generate strong revenue growth and benefit from operating leverage. Microsoft’s cloud computing services business, Azure, is generating robust growth, confirming its competitive positioning.”

9. First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL)

YTD Share Price Gain as of December 12: 4.22%

First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL) tracks the investment results of the Morningstar Dividend Leaders IndexSM, which consists of companies conforming to consistent and sustainable dividend policies. The fund was established in 2006 and offers an expense ratio of 0.46%. The 30-day SEC yield as of November 30 came in at 4.32% and the dividend per share as of December 12 stood at $0.4022. First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL)’s total net assets are $4.5 billion and the portfolio has 100 holdings. It is one of the best performing dividend ETFs to consider. It primarily invests in Energy, Financials, Consumer Staples, Health Care, and Information Technology sectors, among others. 

Exxon Mobil Corporation (NYSE:XOM) is the largest holding in First Trust Morningstar Dividend Leaders Index Fund (NYSE:FDL)’s portfolio. Exxon Mobil Corporation (NYSE:XOM)’s dividend payments to shareholders have increased at an average annual rate of 5.9% over the last 40 years. The company announced on December 8 that it will expand its stock buyback plan to $50 billion through 2024, including $15 billion in 2022. Exxon Mobil Corporation (NYSE:XOM) expects to “double earnings and cash flow potential” by 2027 compared to 2019, and remains on track to report approximately $9 billion in structural cost savings by the end of 2023 compared to 2019 levels.

According to the third quarter database of Insider Monkey, 75 hedge funds were bullish on Exxon Mobil Corporation (NYSE:XOM), compared to 72 funds in the prior quarter. Rajiv Jain’s GQG Partners held the largest position in the company, with 33.8 million shares worth nearly $3 billion. 

In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:

“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industry wide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”

8. USCF ESG Dividend Income Fund (NYSE:UDI)

YTD Share Price Gain as of December 12: 4.42%

USCF ESG Dividend Income Fund (NYSE:UDI) seeks a high level of current income and as a secondary objective, growth of income. It is an actively managed ETF that aims to achieve its investment objective by investing at least 80% of its net assets in US-listed dividend paying and dividend growth companies that meet its environmental, social, and governance (ESG) criteria. It offers an expense ratio of 0.65% and a 30-Day SEC yield of 2.60% as of November 30. It is one of the best performing dividend ETFs in 2022. 

Johnson & Johnson (NYSE:JNJ), an American multinational company that researches and develops, manufactures, and sells various products in the healthcare field worldwide, features as the top holding of USCF ESG Dividend Income Fund (NYSE:UDI). Johnson & Johnson (NYSE:JNJ) is a reliable dividend king, and it has increased the quarterly dividend for the 60th consecutive year in 2022. The company paid a $1.13 per share quarterly dividend to shareholders on December 6. The dividend yield on December 12 came in at 2.55%. 

According to Insider Monkey’s data, Johnson & Johnson (NYSE:JNJ) was part of 85 hedge fund portfolios at the end of the third quarter of 2022, compared to 83 in the earlier quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with nearly 6 million shares worth $967.2 million. 

Distillate Capital Partners LLC shared its outlook on Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here’s what the firm said:

“Johnson & Johnson was among the 2 largest trims at around 1% each. Each stock was up 1% in the quarter compared to the 16% price decline for the S&P 500 and the positions were reduced as the valuations became somewhat less appealing, though still attractive enough to warrant inclusion.”

7. iShares Core High Dividend ETF (NYSE:HDV)

YTD Share Price Gain as of December 12: 4.77%

iShares Core High Dividend ETF (NYSE:HDV) seeks to track the investment results of an index consisting of relatively high dividend paying U.S. equities, with Morningstar Dividend Yield Focus Index as its underlying benchmark. The fund exposes investors to 75 dividend-paying domestic stocks that are financially healthy. As of December 9, iShares Core High Dividend ETF (NYSE:HDV)’s net assets came in at $12.3 billion and it distributes dividends on a quarterly basis. The 30-day SEC yield stood at 4.02% and the fund offers an expense ratio of 0.08%. 

One of iShares Core High Dividend ETF (NYSE:HDV)’s top holdings is Chevron Corporation (NYSE:CVX), a California-based company engaged in integrated energy and chemicals operations worldwide. On December 7, Chevron Corporation (NYSE:CVX) announced a FY 2023 capital spending budget of $17 billion, at the high end of its $15 billion-$17 billion medium-term range and up more than 25% from expected spending in 2022. The budget also includes approximately $2 billion for projects that lower carbon emissions or boost renewable fuels production capacity, which is more than double the 2022 budget. Chevron Corporation (NYSE:CVX)’s streak of consecutive annual dividend increases is up to 35 years, making it a reliable dividend aristocrat. 

According to Insider Monkey’s data, Chevron Corporation (NYSE:CVX) was part of 66 hedge fund portfolios at the end of September 2022, compared to 59 in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 165.3 million shares worth $23.75 billion. 

In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:

“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”

6. WisdomTree U.S. High Dividend Fund (NYSE:DHS)

YTD Share Price Gain as of December 12: 5.83%

WisdomTree U.S. High Dividend Fund (NYSE:DHS) was founded on June 16, 2006 and the fund offers targeted exposure to U.S. high dividend yielding equities. The ETF focuses on large-cap value and dividend oriented active and passive strategies. WisdomTree U.S. High Dividend Fund (NYSE:DHS) seeks to track the price and yield performance of the WisdomTree U.S. High Dividend Index. As of December 9, the fund’s 30-day SEC yield came in at 3.58% and the total assets were $1.4 billion. It is one of the best performing dividend ETFs in 2022. 

One of the largest holdings in WisdomTree U.S. High Dividend Fund (NYSE:DHS)’s portfolio is AbbVie Inc. (NYSE:ABBV), an Illinois-based company that discovers, develops, manufactures, and sells pharmaceuticals worldwide. On October 28, AbbVie Inc. (NYSE:ABBV) declared a $1.48 per share quarterly dividend, a 5% increase from its prior dividend of $1.41. The dividend is payable on February 15, 2023 to shareholders of record on January 3. 

According to Insider Monkey’s Q3 data, 80 hedge funds were long AbbVie Inc. (NYSE:ABBV), compared to 71 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held a prominent stake in the company, consisting of 3.2 million shares worth $431.60 million. 

In addition to Enbridge Inc. (NYSE:ENB), Best Buy Co., Inc. (NYSE:BBY), and Energy Transfer L.P. (NYSE:ET), smart investors are piling into AbbVie Inc. (NYSE:ABBV) as a dividend play. 

Here is what Baron Funds specifically said about AbbVie Inc. (NYSE:ABBV) in its Q3 2022 investor letter:

“AbbVie Inc. (NYSE:ABBV) is a drug developer best known for Humira, an immunosuppressant that is the best selling drug of all time. Given outsized key product risk (patent cliff and generic launches beginning in 2023), AbbVie has broadened its pipeline, highlighted by its Allergan acquisition. Shares fell on results that missed consensus and indications that legacy franchises were outperforming newer product launches, calling into question AbbVie’s long-term strategy. With promising assets in the pipeline and its robust cash flow profile, we believe AbbVie will grow well into the future.”

Click to continue reading and see 5 Best Performing Dividend ETFs in 2022

Suggested articles:

Disclosure: None. 10 Best Performing Dividend ETFs in 2022 is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…