You Can Buy Energy Transfer, but You'd Be Better Off With This High-Yield Stock

In the constellation of energy stocks today, Energy Transfer (NYSE: ET) is a standout, offering investors a lofty 7.7% yield. That's extremely attractive given that the S&P 500 index, even after a big sell-off, is only yielding around 1.3%. The average energy stock is yielding just 3.1%.But before you rush off to buy shares of this Dallas-based pipeline company because of its high yield, you need to know a little bit more about its distribution history. In the end, you might be better off with an industry peer, Enbridge (NYSE: ENB). Here's why.Energy Transfer has a lofty 7.7% yield right now. As noted, that is well above average and it's even higher than Enbridge's 5.8% yield. If all you care about is the yield that exists today, Energy Transfer is the clear winner. But a look back at the history of the master limited partnership's yield is very telling.Continue reading

Apr 21, 2025 - 14:35

You Can Buy Energy Transfer, but You'd Be Better Off With This High-Yield Stock

In the constellation of energy stocks today, Energy Transfer (NYSE: ET) is a standout, offering investors a lofty 7.7% yield. That's extremely attractive given that the S&P 500 index, even after a big sell-off, is only yielding around 1.3%. The average energy stock is yielding just 3.1%.

But before you rush off to buy shares of this Dallas-based pipeline company because of its high yield, you need to know a little bit more about its distribution history. In the end, you might be better off with an industry peer, Enbridge (NYSE: ENB). Here's why.

Energy Transfer has a lofty 7.7% yield right now. As noted, that is well above average and it's even higher than Enbridge's 5.8% yield. If all you care about is the yield that exists today, Energy Transfer is the clear winner. But a look back at the history of the master limited partnership's yield is very telling.