From Yahoo Finance: 2025-06-03 21:07:00

Energy Transfer (NYSE: ET) is a midstream MLP with a 7.5% distribution yield. The business is diversified, with fees tied to 90% of adjusted EBITDA. However, a distribution cut in 2020 and past trust issues with Williams (NYSE: WMB) may give investors pause.

Leverage is down, and $5 billion in capital investments are planned through 2025. Projects span midstream, natural gas, oil, and more, with a focus on steady growth. Distribution is expected to increase 3-5% annually.

Energy Transfer aims for a larger, more profitable business in a year. However, conservative investors may prefer peers like Enterprise Products Partners. The Motley Fool’s Stock Advisor doesn’t include Energy Transfer among its top 10 stock picks.

Read more: Where Will Energy Transfer Be in 1 Year?