Energy Transfer Shows New Opportunities for Dividend Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Stable Cash Flows: Energy Transfer's distributable cash flow covers its dividend by a substantial 1.8x through the first nine months of 2025, indicating strong dividend safety that appeals to income-focused investors.
- Capital Investment Plans: The company plans to invest up to $5.5 billion in 2026, primarily focused on expanding its natural gas operations to support an annual distribution growth rate of 3% to 5%, aligning with the transition to cleaner energy.
- Attractive Yield: With a current dividend yield of 7.3% combined with a 3% growth rate, investors can expect a total return of around 10%, which aligns with broader market expectations and enhances investment appeal.
- Impact of Management Change: The new leadership brings fresh opportunities for the company, and despite past concerns over dividend cuts and a failed merger, Energy Transfer is positioning itself to become a reliable income stock.
Analyst Views on ET
Wall Street analysts forecast ET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ET is 20.65 USD with a low forecast of 17.00 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 17.960
Low
17.00
Averages
20.65
High
23.00
Current: 17.960
Low
17.00
Averages
20.65
High
23.00
About ET
Energy Transfer LP owns and operates a diversified portfolios of energy assets in the United States, with more than 140,000 miles of pipeline and associated energy infrastructure. The Company’s strategic network spans 44 states with assets in all of the major United States production basins. Its core operations include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminalling assets; and NGL fractionation. The Company’s segments include intrastate transportation and storage, interstate transportation and storage, midstream, NGL and refined products transportation and services, crude oil transportation and services, investment in Sunoco LP, investment in USA Compression Partners, LP (USAC), and all other. It also owns Lake Charles LNG Company, LLC, its wholly owned subsidiary, which owns an LNG import terminal and regasification facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
