ET - Energy Transfer: There's Still Time To Buy This Ultra-High-Yielding Stock

2024-02-20 08:00:00 ET

Summary

• Energy Transfer just upped its quarterly distribution last month.
• The midstream operator delivered strong results to unitholders for the fourth quarter.
• Energy Transfer enjoys a BBB credit rating from S&P on a stable outlook.
• Units of the MLP are still approximately 20% undervalued compared to my fair value.
• Energy Transfer has a realistic path to generate low double-digit annual total returns for the foreseeable future.

As an investor, I especially appreciate businesses that consistently generate vigorous cash flows for a variety of reasons.

For one, massive cash flow often means that a company has the option to share the wealth with its owners. This can be done through either dividend/distribution growth, share/unit repurchases, or a combination of the two....

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