Is Energy Transfer Stock a Buy Now?

If you're on the hunt for an investment that can provide a steady stream of passive income, look no further than dividend stocks. One that stands out is Energy Transfer (NYSE: ET), which boasts an impressive 7.1% dividend yield. What makes Energy Transfer particularly attractive is its stable cash flow from midstream operations.

With the surge in oil and gas production across the U.S. and a regulatory landscape becoming increasingly favorable for expansion, Energy Transfer is well positioned. Here's what investors should know today.

The first thing investors should be aware of is that Energy Transfer operates as a master limited partnership (MLP). MLPs don't pay taxes at the corporate level. Instead, profits are distributed to investors (limited partners), allowing MLPs to return more cash to their unitholders compared to typical corporations. This is why Energy Transfer offers an appealing distribution yield of over 7%.

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Source Fool.com