Energy Transfer Has Lots of Fuel to Grow its 7%-Yielding Dividend in 2025 and Beyond
AT&T, Altria Group, and Energy Transfer are top buys with dividends from $1K invested exceeding single share prices, meeting the dogcatcher ideal. Analysts forecast 15.47% to 28.33% net gains by November 2025 for top-ten F500IL dogs, with Energy Transfer as the standout “safer” choice. Eight F500IL stocks show negative free cash flow margins, making them unsafe buys; price drops or dividend increases could make top-yield F500IL fair-priced.
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Energy Transfer is poised to benefit from a Trump Administration due to pro-energy policies, less regulation, and increased domestic energy production. ET's extensive infrastructure, recent acquisitions, and growing export capabilities position it well to handle increased energy volumes and capitalize on global demand. Despite high debt, ET's strong revenue, undervaluation compared to peers, and a 7.5% yield make it an attractive investment for capital appreciation and income.
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Energy Transfer's Q3 2024 results show record volumes and a 12% YoY increase in adjusted EBITDA, highlighting successful growth investments and strong DCF. The company's integrated asset portfolio and expansion in natural gas and NGL exports position it well for future growth and market share. Shareholder returns are robust with a 7.5% dividend yield, supported by strong adjusted EBITDA and careful debt management despite significant acquisitions.
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Energy Transfer remains a top holding in my portfolio, with a strong buy rating due to its robust cash flow and undervaluation. Despite missing Q3 revenue and EPS estimates, the company maintained 2024 guidance, reinforcing its long-term value for investors. Impressive EBITDA growth driven by the Midstream segment and Sunoco LP investment, with significant upside potential compared to peers.
Energy Transfer stock remains a 'buy' due to its 7.5% distribution yield, strategic asset positioning, and attractive valuation metrics compared to peers. ET is positioned to benefit from the incoming administration, growing demand for natural gas, and strong operational performance with record-setting crude oil, NGL, and midstream volumes. Expansion projects in the Permian Basin and Nederland terminal position ET to meet future energy demand and capitalize on global LNG and LPG export opportunities.
The stock for this midstream energy company looks well-positioned moving forward.
Energy Transfer reported strong Q3 earnings, with significant growth in oil and steady performance in NGL and natural gas volumes. New demand from power plants and data centers could significantly boost ET's natural gas infrastructure, enhancing its growth prospects. Despite strong fundamentals and exceeding pre-COVID distribution rates, ET remains undervalued, trading below pre-COVID highs.
ET continued its strong YTD performance in Q3, delivering record volumes across segments with EBITDA margins rising ~200bps y/y on strong Midstream performance. The Permian basin remains a key strategic focus with gathering & processing capacity to rise ~25% through YE25 on several high-scale startups. The acquisition of WTG Midstream will expand ET's Permian footprint to the Midland basin, boosting gathering capacity by a further 40% while being ~2% accretive to EBITDA/unit.