ETRN - Equitrans Midstream: Look Past A Boring 2021 For A 14% Yield In The Future

• The last eighteen months have been rough for Equitrans Midstream and their shareholders with their dividends being reduced significantly and their share price still down around 30%.
• Whilst their dividend coverage should be adequate during 2021, their guidance for decreasing earnings diminishes the appeal and thus makes the year feel rather boring.
• Thankfully when looking into the future, their earnings are set to surge upwards of 30% once their major growth projects are completed.
• This will send their free cash flow surging and also fix their currently overleveraged financial position.
• Whilst their dividends are currently risky, this will change in the future and given their scope to double their dividends to a very high 14% yield on current cost, I believe that a bullish rating is appropriate.

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