Is Energy Transfer Stock a Buy Now?
Energy Transfer (NYSE: ET) has many attractive things to offer investors. The list includes a large 7.2% distribution yield, a diversified and fee-supported midstream business, an investment grade rated balance sheet, and $5 billion in growth spending in 2025 (with more investment opportunities waiting in the wings). For conservative income investors, however, there's one issue that might keep this North American midstream giant on the no-buy list.
Energy Transfer is clearly an income stock. Investors buying it are most likely looking for the midstream master limited partnership (MLP) to pay a reliable distribution. In fact, the hope is probably for regular distribution increases over time. Energy Transfer has let investors down on this front.
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Source Fool.com
