The Alerian MLP ETF (AMLP ) on Wednesday declared its second quarter 2022 distribution of $0.73.
The dividend is payable on May 19, 2022 to shareholders of record on May 13, 2022. Based on current financial information, the distribution is estimated to consist of 100% return of capital, according to a statement from ALPS.
Six of the 15 constituents in the Alerian MLP Infrastructure Index (AMZI), which is tracked by AMLP, increased their payouts sequentially, including Cheniere Energy Partners LP (CQP), Crestwood Equity Partners LP (CEQP), Energy Transfer LP (ET), Hess Midstream LP (HESM), Plains All American Pipeline LP (PAA), and Western Midstream Partners LP (WES).
The six names represent 43.1% of AMZI by weighting as of May 6, 2022. The remaining nine names maintained their payouts at the same level as the prior quarter; there have not been any distribution cuts among AMZI constituents since the second quarter of 2021.
Notably, this is the first distribution increase from CEQP (which was held at a 4.67% weight as of May 11) since 2019. Last fall, the company guided to an increase once its acquisition of Oasis Midstream Partners (OMP) closed; the transaction was completed in February, according to a statement from the firm.
ET saw a double-digit percentage increase quarter-over-quarter, increasing its dividend by 14.3% from the prior quarter.
PAA’s increase was 20.8% up from the prior quarter, marking the company’s first increase since cutting in early 2020.
CEQP’s distribution includes a base amount equal to $0.775 and a variable amount equal to $0.275. Energy variable dividends were expected to be higher in 2022 due to a rally in oil prices; they can be a good way for companies to maintain financial discipline and return cash when many investors are hungry for income, Barron’s reports.
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