Energy Transfer (NYSE: ET) faces skepticism from dividend investors after cutting distribution in 2020. The CEO’s past decisions raised red flags about prioritizing insiders. But with a new CEO and distribution growth projections of 3-5%, Energy Transfer offers a 7.4% yield, potentially attractive for income-seeking investors.

The company’s distribution growth target of 3-5% could lead to a yield of over 10% in the long term. However, to maintain this yield, the stock price would need to rise as the distribution increases. Slow and steady distribution growth could result in slow and steady price appreciation in Energy Transfer’s stock.

Despite past concerns, Energy Transfer’s forecasted distribution growth rate of 3-5% could outpace inflation, maintaining or increasing buying power over time. This could make the stock appealing to investors seeking consistent income. However, it was not among the 10 best stocks identified by the Motley Fool’s Stock Advisor team for potential high returns.

Read more at Yahoo Finance: Where Will Energy Transfer Be in 10 Years?