From Nasdaq: 2025-05-17 18:23:00

Energy Transfer (NYSE: ET) is appealing to income-focused investors with a 7.3% distribution yield that has increased every quarter for almost four years. The company operates pipelines, storage, transportation assets, and acts as the general partner for Sunoco LP (NYSE: SUN) and USA Compression Partners (NYSE: USAC). However, Energy Transfer’s distribution cut in 2020 raises concerns about its reliability compared to Enterprise Products Partners (NYSE: EPD). While Energy Transfer has improved its balance sheet, investors should weigh the risk of potential future disappointments with the company. (Word count: 85)

Income-focused investors considering Energy Transfer (NYSE: ET) should be aware of the company’s history of distribution cuts, despite recent increases. The decision to reduce leverage on its balance sheet in 2020 during the pandemic led to a 50% distribution cut, causing concern for investors. Comparatively, Enterprise Products Partners (NYSE: EPD) offers a more stable income stream with a slightly lower yield. While Energy Transfer is on a better trajectory post-cut, investors must assess the risk of potential future disappointments with the company. (Word count: 77)

Before investing in Energy Transfer (NYSE: ET), investors should be cautious of the company’s past distribution cuts and consider the potential for future disappointments. While Energy Transfer has improved its balance sheet, the history of cuts during economic downturns may deter some income-focused investors. Alternatively, Enterprise Products Partners (NYSE: EPD) offers a more reliable income stream with a slightly lower yield and a simpler business model, making it a safer option for those seeking stability in their investments. (Word count: 77)



Read more at Nasdaq: Could Buying Energy Transfer Stock Today Set You Up for Life?