Energy Transfer (ET) offers high dividend yield of over 7.4%, with steady growth potential.

From Yahoo Finance: 2025-06-25 19:30:00

Investors are turning to low-beta dividend stocks for stability amidst market volatility. Midstream energy companies, like Energy Transfer (ET), offer high yields. ET’s current dividend yield is over 7.4%, with intentions to increase annually by 3%-5%. Despite a 2020 distribution cut, growth drivers like export market expansion and increased capex budgets make ET a promising buy.

Energy Transfer’s favorable valuations, growth opportunities in energy exports, and improved corporate governance make it a compelling investment. While not a high-growth stock, ET appeals to conservative investors seeking high dividends and potential capital appreciation. Analysts favor ET, with a mean target price of $22.93, almost 30% higher than the current price.

President Trump’s energy policies and growth drivers like data center electricity demand support Energy Transfer’s potential. With a forward EV-to-EBITDA multiple of 8.3x, ET’s valuations are reasonable given its growth prospects. As a reliable choice for conservative investors, ET offers a high dividend yield and moderate capital appreciation potential over the long term.



Read more at Yahoo Finance: 1 Dividend Stock to Buy Yielding Over 7%