Energy Transfer offers a 7.4% dividend yield with strong earnings and growth potential

Adding a high-quality, high-yield dividend stock to your portfolio can generate steady income. Energy Transfer (ET) offers a 7.4% dividend yield and a history of increasing dividends, supported by strong earnings and distributable cash flow. Its diversified energy infrastructure network and stable cash flow make it an attractive investment for passive income seekers.

Energy Transfer focuses on enhancing profitability by securing long-term volume commitments, improving operational efficiencies, and pursuing new initiatives. With a 3% increase in quarterly dividends to $0.3275 per share, the company offers a forward yield of 7.4%. Its asset portfolio, growth potential, and commitment to shareholder payouts make it an appealing option for investors.

The company’s strategic investments, growing demand for natural gas infrastructure, and take-or-pay contracts position Energy Transfer for consistent dividend growth. Backlog growth projects with high-quality counterparties are expected to contribute to earnings and support future dividend hikes. Structural tailwinds in the natural gas market further strengthen its position for growth.

Energy Transfer’s management targets $5 billion in organic growth capital investments by 2025, delivering mid-teen returns and downstream benefits. An agreement with CloudBurst data centers to supply natural gas to their AI-focused facility in Texas highlights revenue-generating opportunities. Analysts rate the stock as a “Strong Buy” due to its fee-based earnings, growth projects, and high yield, making it an appealing income investment.

Read more at Yahoo Finance: Add This Dividend Stock Yielding 7.4% to Your Portfolio for Steady Income