Energy Transfer Dividend Yield Basics

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Energy Transfer's dividend yield is a key metric for investors to consider. The company's dividend yield is around 10%, which is significantly higher than the industry average.

This high dividend yield is largely due to the company's current stock price, which has been affected by market fluctuations. Energy Transfer's stock price has been volatile in recent years.

Investors looking for a high income stream may find Energy Transfer's dividend yield appealing. However, it's essential to consider the company's financial health and stability before making a decision.

Energy Transfer's dividend payout ratio is around 50%, which is relatively high compared to other companies in the industry. This means that the company is using a significant portion of its earnings to pay dividends.

What is Yield?

Yield is a crucial aspect of investing, particularly for income-oriented investors. Energy Transfer's dividend yield is 6.54%, making it an attractive option for those seeking regular income.

A dividend yield of 6.54% means that for every dollar invested, you can expect to earn 6.54 cents in dividend payments each year. This can be a significant source of passive income, especially for long-term investors.

Dividend yields are often higher for companies in industries with slower growth rates, such as energy. Energy Transfer's yield is a result of its focus on providing essential energy infrastructure services.

History and Payout

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Energy Transfer has been paying dividends since 2006.

The company has consistently distributed four quarterly dividends in the past year.

The annualized dividend per share has increased by 3.2% since twelve months ago.

However, the dividend yield has decreased by 26% due to the stock price increasing by 39% from a year ago.

Earnings coverage is a crucial aspect of dividend payments, and Energy Transfer's high payout ratio of 93.3% indicates that its dividend payments are not well covered by earnings.

History

Energy Transfer has been paying dividends since 2006. This is a significant milestone for the company, showing its commitment to rewarding shareholders over the years.

The company has distributed four quarterly dividends in the past year, demonstrating its consistent dividend payout history. This consistency is a good sign for investors.

The annualized dividend per share has increased by 3.2% since twelve months ago, which is a relatively modest increase. However, it's still a positive trend for dividend investors.

But what does this mean for the dividend yield? Unfortunately, with the price of the stock up by 39% from a year ago, the dividend yield has decreased by 26%. This decrease in dividend yield is a result of the stock's price appreciation.

Payout Ratio

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Energy Transfer's payout ratio is a crucial metric to understand its dividend policy. It's above the Energy sector average of 55.8%.

The company's payout ratio of 93.8% is significantly higher than its sector average, which means it pays out a larger portion of its earnings to shareholders. This is a key consideration for investors looking to gauge the sustainability of the dividend.

Energy Transfer's high payout ratio of 93.8% raises concerns about earnings coverage. The dividend payments are not well covered by earnings, which could be a red flag for investors.

On the other hand, the company's cash payout ratio of 64.8% is more reasonable and indicates that dividend payments are covered by cash flows.

Dividend Yield Comparison

Energy Transfer's dividend yield of 6.54% is significantly higher than the Energy sector average of 4.34%.

Compared to its Energy sector average, Energy Transfer's dividend yield is 51% higher, making it a more attractive option for investors seeking higher returns.

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Energy Transfer's dividend yield is also higher than the industry average, standing at 6.54% compared to the industry average of 4.0%.

Let's take a look at how Energy Transfer's dividend yield compares to the market:

Energy Transfer's dividend yield of 6.6% is higher than the bottom 25% of dividend payers in the US market, which stands at 1.51%. This suggests that Energy Transfer's dividend yield is more competitive compared to its peers.

Energy Transfer's dividend yield is also in the top 25% of dividend payers in the US market, which is a positive indicator for investors seeking higher returns.

Dividend Payment

Energy Transfer has a long history of paying dividends, with a streak of 18 years.

The company pays out its dividends four times a year, which is a relatively high frequency.

Energy Transfer's dividend yield is above the Energy sector average, making it an attractive option for income investors.

However, the company's high payout ratio of 93.3% means that its dividend payments are not well covered by earnings.

On the other hand, its cash payout ratio of 64.8% indicates that its dividend payments are covered by cash flows, providing a more stable source of income.

LP (NYSE:ET) Information

Credit: youtube.com, Best Dividend Stocks - Energy Transfer LP (ET)

Let's take a closer look at LP (NYSE:ET) Information. LP, also known as Energy Transfer, is a leading energy infrastructure company in the United States.

Energy Transfer has a market capitalization of over $40 billion, making it one of the largest energy companies in the country.

LP (NYSE:ET)

Energy Transfer LP (NYSE:ET) has a dividend yield of 6.90% as of December 20. This is one of the highest dividend yields among its peers.

The company has a strong track record of growth, with a 5-year share price return of 43.11%. This is a testament to the company's ability to deliver impressive operational and financial performance.

Energy Transfer LP (NYSE:ET) is a Texas-based energy company that specializes in pipeline transportation and storage for natural gas, crude oil, and refined products. The company has a strong cash position, with distributable cash flow (DCF) to partners increasing by $4 million to reach $1.99 billion.

Credit: youtube.com, 7%+ Collective Loss | ET Stock | Energy Transfer LP Securities Class Action Lawsuit #ET

The company's latest quarter saw volumes across its systems set several volume records, driven by organic growth initiatives and strategic acquisitions. This includes the completion of its $3.1 billion acquisition of WTG Midstream in July.

Energy Transfer LP (NYSE:ET) has multiple projects set to begin commercial service within the next two years, offering greater clarity on its future growth trajectory. The company plans to allocate $2.8 billion to $3 billion toward growth capital projects in 2024.

Here's a comparison of ET's dividend yield and payout ratio with its peers:

Ratings - Et

ET's dividend safety is stable, with a payout ratio of 40% that's right in line with its sector average of 41%.

The company's dividend yield is a very attractive 6.56%, ranking it in the top 15% of its peers.

You can tell there's low controversy surrounding ET, with only 1.2% of its shares held short.

Over the past three years, ET's dividend growth has been impressive, with a 14% compound annual growth rate that puts it in the top 20% of its industry.

Does Pay Good?

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Energy Transfer's dividend yield is above the Energy sector average. This is a good sign for investors looking for a reliable source of income.

Data from and Sharadar shows that special dividends are included in TTM DPS and yield, which can impact the overall dividend picture.

Investors may want to consider the Energy sector, but in small doses, as it carries some level of risk.

Frequently Asked Questions

What is the yield of energy transfer?

The yield of Energy Transfer LP is 6.69%. This relatively high yield makes it an attractive option for income investors.

What is the payout ratio for energy transfer LP?

The payout ratio for Energy Transfer LP has ranged from 0.32 to 1.64 over the past 13 years, with a median of 0.78. As of 2024, the company's payout ratio is likely within this range, but the exact figure is not specified.

Forrest Schumm

Copy Editor

Forrest Schumm is a seasoned copy editor with a deep understanding of the financial sector, particularly in India. His expertise spans a variety of topics, including trade associations, banking institutions, and historical establishments. Forrest's work has shed light on the intricate landscape of Indian banking, from the Indian Banks' Association to the significant 1946 establishments that have shaped the industry.

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