The 5 Best Dividend ETFs for 2024

To arrive at the best dividend ETFs for 2024, we began with the entire universe of exchange-traded funds and screened for high dividend yield ETFs with the best year-to-date returns through June 18, 2024. 

We first screened for 30-day SEC yields above 5% and then ranked those funds by performance. Leveraged ETFs and derivative income funds, such as covered call ETFs, were eliminated from our search. 

While past performance is no guarantee of future results, and high yields can indicate higher market risk, the top-performers in this space are dominated by funds focusing on master limited partnerships. MLPs are publicly traded partnerships that combine the tax benefits of a private partnership with the liquidity of a stock, often focusing on energy, natural resources and infrastructure.

The Alerian MLP ETF (AMLP) tracks a basket of Master Limited Partnerships (MLPs) in the energy infrastructure sector, offering investors exposure to this income-generating asset class.

The companies listed in its market-cap-weighted index earn majority of their cash flow from midstream activities involving energy commodities.

• YTD return: 12.80%
• SEC yield: 10.31%
• Expense ratio: 0.85%
• AUM: $8.4 billion

The Global X MLP & Energy Infrastructure ETF (MLPX) offers exposure to Master Limited Partnerships (MLPs) and energy infrastructure companies, targeting income generation.

Unlike most existing MLP ETPs that are structured as C-corporations, MLPX is regulated as a classic 1940 Act fund. While this eliminates the downsides of the other structures, it also means the fund offers diluted exposure to MLPs.

• YTD return: 14.27%
• SEC yield: 5.74%
• Expense ratio: 0.45%
• AUM: $1.5 billion

The InfraCap MLP ETF (AMZA) focuses on midstream energy companies, generating income through high current payouts.

These midstream companies don't directly drill for oil or gas, but instead focus on the transportation, storage, and processing of energy products like oil, natural gas, and natural gas liquids.

• YTD return: 14.76%
• SEC yield: 9.05%
• Expense ratio: 2.18%
• AUM: $338.8 million

The Alerian Energy Infrastructure ETF (ENFR) provides investors with exposure to companies across the North American energy infrastructure landscape.

The ENFR ETF holds a broad range of energy infrastructure businesses, including pipelines, utilities and companies involved in storage and transportation of energy resources.

• YTD return: 14.91% 
• SEC yield: 5.30%
• Expense ratio: 0.35%
• AUM: $149.3 million

The Cambria Emerging Shareholder Yield ETF (EYLD) targets emerging market companies that return cash to shareholders through a three-pronged approach. 

Unlike traditional dividend-focused ETFs, EYLD considers not just dividends but also net share buybacks, where companies repurchase their own stock, and low financial leverage. This strategy aims to identify companies in developing economies that prioritize returning value to shareholders while maintaining a healthy financial profile.

• YTD return: 15.31%
• SEC yield: 5.67%
• Expense ratio: 0.66%
• AUM: $420.8 million