ET - Yielding Like A Gusher: 8% Makes Energy Transfer The MLP That Pays

2024-06-27 10:22:38 ET

Summary

• Americans are at risk of falling into a "cash trap" as interest rates peak, leading to a search for new investment opportunities.
• Energy Transfer (ET) is a high-quality value stock with an 8% yield, strong performance, growth potential, and solid financials.
• ET's mix of income and growth makes it a compelling investment choice as investors seek alternatives to falling high-yield money market returns.

Introduction

Have you ever heard of the "cash trap?"

It's OK if you haven't, as it's a topic I will spend a lot of time on in the weeks and months ahead.

On June 25, The Wall Street Journal wrote an article titled "Americans Chasing High Interest Rates Risk Falling Into a 'Cash Trap'"

This is what a cash trap entails (I added emphasis):

Americans have poured money into cash-like investments since the Fed began raising interest rates , driving assets in money-market funds to a record $6.12 trillion earlier this month, according to the Investment Company Institute. Now, Wall Street traders are betting rates have peaked and those investors face a choice: keep sitting on their cash as interest payments shrink , or figure out how to redeploy the money . - The Wall Street Journal

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