Energy Transfer (NYSE: ET) boasts an enticing 8% dividend yield, making it a darling for income-focused investors.
Recently, Zacks.com users have been paying close attention to Energy Transfer LP (ET). This makes it worthwhile to examine what the stock has in store.
Energy Transfer LP (ET) concluded the recent trading session at $15.87, signifying a -1.79% move from its prior day's close.
The stock market panic created a unique opportunity to lock-in a high-quality 8%+ distribution yield. ET's forward P/E ratio is low, with a fair value of $26.60, offering a significant margin of safety and making it a compelling investment. Massive expected U.S. manufacturing expansion will apparently boost energy demand, providing a significant tailwind for the midstream industry.
Energy Transfer LP is a leading midstream MLP with significant operations across the U.S., which provides it with exposure to most of the basins in which hydrocarbons are produced. The company is larger than its peers and has shown higher revenue growth due to mergers and acquisitions, focusing on natural gas infrastructure. It is unlikely that there will be any significant oil production growth unless prices increase substantially, limiting Energy Transfer's ability to generate growth in that business.
It's quickly apparent that all anyone is going to focus on in the immediate future is the sweeping tariffs President Trump just imposed on more than 180 countries.
With changing government administrations potentially becoming more favorable to the energy sector and with many of the stocks in that sector trading at a discount to historical valuations, midstream stocks are shaping up to be solid long-term investments right now.
Energy Transfer (ET -0.59%) is the kind of business that an income investor would be attracted to. Its midstream assets produce reliable, fee-driven cash flows that help support a large and growing distribution.
There are a lot of things about Energy Transfer (ET -0.85%) stock that an income-focused investor will find attractive. The big one is the roughly 6.8% yield that is backed by a growing distribution.
Energy Transfer (ET -0.85%) has been a terrific investment over the past year. The energy midstream giant's unit price has rallied 22.5%.
The stock market has pulled back in recent weeks as traders have grown more fearful of a potential recession. Fortunately for us, short-term economic concerns often create lucrative opportunities for long-term investors.
With a market capitalization of $65 billion, Energy Transfer (ET 0.24%) is among the top five energy infrastructure stocks in the U.S. Its pipeline, spanning more than 130,000 miles, gathers and stores natural gas, natural gas liquids, crude oil, and refined products, and transports them across the nation.