Energy Transfer: A High-Yield Income Powerhouse in Energy Infrastructure
Energy Transfer (ET) stands out as a compelling income investment with a dividend yield exceeding 7%, dwarfing the broader market's 1.2%. The master limited partnership (MLP) leverages a low-risk, fee-based business model—90% of EBITDA stems from long-term contracts and regulated assets—to sustain its lucrative payouts.
First-quarter distributable cash FLOW of $2.3 billion comfortably covered $1.1 billion in investor distributions, leaving ample room for growth investments. With leverage ratios in the lower half of its target range, the MLP combines yield with financial stability, albeit requiring tolerance for Schedule K-1 tax filings.