Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the past year -- the master limited partnership currently yields an eye-popping 18.7%. Usually, when a payout's that high, it's because the market doesn't believe it's sustainable. However, when it comes to Energy Transfer's payout, it's not so cut and dried. Here's a look at why it's not clear what the future holds for this massive payout.
The payout's future seems uncertain - Energy Transfer clearly values its investment-grade credit rating above its current distribution level, and it would cut the payout if that were the key to keeping its rating intact. That leaves the payout's future up in the air, making Energy Transfer a less-than-ideal option for income investors these days since there's a risk that its big-time payout might not last.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
The rollout of fifth-generation network services, also known as 5G, enhances the appeal of each of these three dividend-paying, 5G technolog...
-
With interest rates stuck below 1%, finding income in today's market can be difficult. Therefore it makes sense for income investors to ...
-
These stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sust...
-
Before you go ahead and fill your portfolio with dividend stocks, it would be prudent to check out their market capitalizations as well. Sev...
-
Unfortunately, some investors that are new to dividend stocks end up chasing the highest yield stocks they can find and end up getting burne...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.