Energy Transfer Raises Dividend for 19th Consecutive Quarter
Energy Transfer (ET) has raised its quarterly dividend to $0.34 per unit ($1.36 annualized), marking the 19th consecutive quarter of increases and pushing its yield up to approximately 6.8%. The distribution will be paid on August 19, with a record date of August 7. This follows a strategy initiated in late 2021 after a significant dividend cut in early 2020 aimed at strengthening the company's financial position. Energy Transfer is now generating substantial excess free cash flow and plans to grow its distribution by 3% to 5% annually, supported by $5.5 billion to $5.9 billion of growth capital investments this year. The MLP has a multi-year expansion backlog with projects expected through 2030, including major gas pipeline developments. Despite strong performance and price appreciation over the past year, Energy Transfer trades at an attractive valuation compared to its peers. Analysts view it as a compelling buy for both income growth and capital appreciation due to robust earnings and cash flow expansion.
Tickers: $ET
Topics: dividends energy income investing mlp