Energy Transfer's extensive and diversified asset base is nearly impossible to replicate. The high capital expenditure that was required to build out this midstream portfolio has had a depressing effect on cash flow, but should eventually pay dividends for unit holders. Bright growth prospects and an eventual diversion of cash flow to unit holders should offer attractive returns for long-term owners.
ET expands its midstream footprint with strategic buys, unlocking synergies and driving long-term cash flow stability.
Energy Transfer LP (ET) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Energy Transfer LP remains a strong buy due to its attractive 7.4% distribution yield, offering portfolio stability amid market uncertainty. Despite underperforming mega-cap tech stocks, ET delivered a solid 14% total return since my last update, reinforcing its defensive qualities. I plan to continue accumulating ET shares, as its risk/reward profile and income potential are compelling in today's volatile environment.
Building a retirement portfolio with 7%+ yield is tough today as markets are top-heavy and valuations are high, making stock picking crucial now. The market favors active picking due to index concentration and valuation risks. Careful stock selection in key sectors can deliver income and growth. Two standout stocks benefit from strong secular trends and solid yields, showing how targeted picks can outperform broad indexes in this market.
In the most recent trading session, Energy Transfer LP (ET) closed at $17.75, indicating a -1.22% shift from the previous trading day.
Energy Transfer LP is well positioned to benefit from rising U.S. natural gas demand, especially due to its Marcellus presence and ongoing infrastructure expansion. Despite limited near-term catalysts from oil prices, ET's cash flows remain resilient and are not directly tied to commodity price swings. The company offers a high, tax-advantaged yield (7.29%) with strong distribution coverage, making it attractive for income-focused investors.
In the latest trading session, Energy Transfer LP (ET) closed at $17.81, marking a -1.77% move from the previous day.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
ET ramps up high-return infrastructure projects to boost volume growth, operational scale and long-term cash flows.
Oil prices are likely to remain highly volatile given the undergoing geopolitical risks, especially the OPEC+ production decisions and also the Israel-Iran conflict. ET can help shield energy investors against oil price fluctuations due to its fee-based model, consistent dividends, and generous yield. In addition, the use of P/E ratios exaggerates its valuation, which is quite reasonable when adjusted for leverages.
Energy Transfer's fee-based contracts drive steady earnings, support growth investments and shield it from commodity price volatility.