Realty Income and Energy Transfer Dividend Appeal Rebounds as Rates Decline
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Dividend Appeal Rebounds: As the Federal Reserve cut benchmark rates six times in 2024 and 2025, Realty Income's dividend yield has risen to 6.08%, attracting more income-oriented investors, with expectations for stable cash flows moving forward.
- Robust Leasing Portfolio: Realty Income owns over 15,500 commercial properties with tenants like 7-Eleven and Dollar General, and despite facing store closures, its high occupancy rate of 98.7% ensures a steady revenue stream.
- Energy Transition Growth: Energy Transfer's adjusted distributable cash flow increased from $5.74 billion in 2020 to $8.36 billion in 2024, while annual distributions rose from $2.47 billion to $4.39 billion, showcasing strong growth potential amid rising LNG export demand.
- Value Investment Opportunity: With projected earnings per unit rising 4% to $1.34 in 2025, covering a distribution rate of $1.33, Energy Transfer's current price of $17 reflects a 13x valuation, making it an attractive option for value-oriented income investors.
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 22.00 USD with a low forecast of 17.00 USD and a high forecast of 25.00 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.
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.420
Low
17.00
Averages
22.00
High
25.00
Current: 16.420
Low
17.00
Averages
22.00
High
25.00
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.
