By Marc Lichtenfeld Below, Investment U’s Income Expert, Marc Lichtenfeld, takes a look at Energy Transfer’s dividend safety.
Energy Transfer (NYSE: ET) is a favorite of income-seeking investors due to the stock’s strong distribution yield. (Energy Transfer is a master limited partnership, or MLP. MLPs pay distributions, not dividends.)
The company has 90,000 miles of pipelines and boasts that 30% of the United States’ oil and natural gas moves through those pipelines.
Now, thanks to the collapse in anything oil-related, the stock yields a whopping 15.7%. But can investors bank on continuing to receive the distribution?
Energy Transfer’s cash available for distribution (CAD), a measure of cash …read more
