Energy Transfer Offers High Yield and Upside for Income Investors
• Energy Transfer (ET) offers a massive 8.5% dividend yield and trades at a cheap valuation, providing income and upside potential.
• It generates steady cash flow, pays out less than half to investors, allowing it to fund growth projects and acquisitions.
• The MLP expects to grow its distribution 3-5% annually and has multiple catalysts like unit repurchases, project approvals, and continued consolidation.
• Analysts believe there is over 20% upside, with a potential 50% gain to reach the high price target of $22 per unit.
• With a high, growing yield and significant appreciation potential, ET can produce strong total returns, making it a compelling buy.