ET - Energy Transfer: 8% Yielder With An Enhanced Growth Profile
2024-06-01 17:16:03 ET
Summary
- Energy Transfer has been one of my top picks in the midstream space.
- Since my issuance of my bull thesis, ET outperformed its closest peers by a notable margin.
- This could raise the question of a potential overvaluation.
- In this article I explain why this is not the case and why I am still maintaining my buy rating for ET.
January this year, I issued a bullish article on Energy Transfer (ET) arguing that its dividend, which at that time yielded ~9%, was in a much safer position than several years ago when ET was forced to cut it. In the article I also highlighted several dynamics, which, in my opinion, introduced quite favorable conditions for ET to deliver strong total returns. In other words, the investment case did not revolve just around the dividend, but also around ET's organic and M&A growth potential....
Energy Transfer: 8% Yielder With An Enhanced Growth Profile