ET - This Ultra-High-Yield Dividend Stock's Income Is a Lot Bigger Than It Seems
2023-11-07 05:35:00 ET
Energy Transfer (NYSE: ET) pays a monster distribution. The master limited partnership (MLP) currently yields an eye-popping 9.3%. Usually, a yield that high is a warning sign that the payout isn't sustainable.
A quick glance at the company's recent third-quarter earnings might give uninformed investors the impression that it can't maintain its big-time distribution. However, a closer look shows that the company's cash flow is more than enough to support (and grow) its monster payout.
Most investors should be familiar with how to read a company's income statement . It's a crucial document that provides a snapshot of its financial performance in a period. Here's a visualization of Energy Transfer's income statement from the third quarter:
For further details see:
This Ultra-High-Yield Dividend Stock's Income Is a Lot Bigger Than It Seems