Prediction: With an 8% Yield and Dividend Increases Ahead, Now Is the Time to Buy Energy Transfer

With a more than 8% yield and an increasing distribution, Energy Transfer (NYSE: ET) stock is a dividend darling. The company announced a 3% increase in its distribution last month, taking it to $1.31 per share on an annualized basis. It generally raises its payout a little each quarter. Meanwhile, it has plans to continue increasing its distribution by about 3% to 5% a year moving forward. Its distribution is well covered by its distributable cash flow (DCF), which is operating cash flow minus maintenance capital expenditures (capex). In the first quarter, its DCF coverage ratio was a robust 2 times, meaning that it generated twice as much DCF as it paid out in distributions.With a much-improved balance sheet, Energy Transfer is well-positioned to continue to grow its distribution moving forward. However, it also has solid growth opportunities in front of it.Continue reading

May 11, 2025 - 10:29

Prediction: With an 8% Yield and Dividend Increases Ahead, Now Is the Time to Buy Energy Transfer

With a more than 8% yield and an increasing distribution, Energy Transfer (NYSE: ET) stock is a dividend darling. The company announced a 3% increase in its distribution last month, taking it to $1.31 per share on an annualized basis. It generally raises its payout a little each quarter.

Meanwhile, it has plans to continue increasing its distribution by about 3% to 5% a year moving forward. Its distribution is well covered by its distributable cash flow (DCF), which is operating cash flow minus maintenance capital expenditures (capex). In the first quarter, its DCF coverage ratio was a robust 2 times, meaning that it generated twice as much DCF as it paid out in distributions.

With a much-improved balance sheet, Energy Transfer is well-positioned to continue to grow its distribution moving forward. However, it also has solid growth opportunities in front of it.