Latest news with #EnergyTransfer
Yahoo
3 days ago
- Business
- Yahoo
Here Are My Top 3 High-Yield Pipeline Stocks to Buy Now
Energy Transfer stock has a high yield with plans to increase its distribution moving forward. Enterprise Product Partners is a sleep-well-at-night stock with an attractive yield. Western Midstream Partners is an income-oriented investor's dream. 10 stocks we like better than Energy Transfer › If you're looking for stocks with high dividend yields that are safe, the midstream energy sector is a great place to start your search. The energy industry has transformed itself since the last big energy bust. Producers are no longer chasing production growth and instead are more focused on their cash flows. Pipeline companies, meanwhile, have improved their balance sheets and learned to grow within their cash flow. Energy prices and their impact on volumes are always a risk, but with both pipeline companies and their customers in solid financial shape, now is a great time to invest in the sector. Let's look at three high-yield pipeline stocks to invest in right now. I currently own all three and have for a long time. With a 7.3% forward yield and plans to increase its distribution by between 3% to 5% a year moving forward, Energy Transfer (NYSE: ET) is a stock that should be on every income-oriented investor's radar. After being forced to cut its distribution in half during the height of the pandemic when the economy effectively shut down for a short time, the company has worked hard to lower its leverage, improve its balance sheet, and restore its distribution to a level that is now above where it was before the cut. Last quarter, Energy Transfer proclaimed that its balance sheet was in the strongest position in its history. It also noted that it had its highest-ever percentage of take-or-pay contracts, which means that it gets paid on these agreements regardless of whether or not customers use its services. Overall, it expects 90% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) this year to come from fee-based services, where it has no exposure to fluctuating commodity costs or spreads. These types of contracts add to the safety of its cash flows and, thus, distributions. Meanwhile, the company sees a lot of attractive growth opportunities ahead stemming from increased natural gas demand. It is ramping up its growth capital expenditure (capex) this year to $5 billion from $3 billion, with an expectation of mid-teens returns on its projects. Energy Transfer has already signed a deal to supply natural gas to a planned data center in Texas and continues to explore artificial intelligence (AI) related opportunities. Trading at a forward enterprise value (EV)-to-EBITDA multiple of just 8.1 times, the stock is also cheap both on a relative basis and on a historical basis. If there is one midstream stock you can sleep well owning, it's Enterprise Product Partners (NYSE: EPD). The company has increased its distribution every year for the past 26 years through various energy and stock market turmoil. At present, the stock sports a 6.8% forward yield after increasing its distribution by nearly 4% year over year last quarter. The company takes a conservative approach and has one of the best balance sheets in the midstream sector. Like Energy Transfer, it also has a largely fee-based business and includes take-or-pay provisions in its contracts when it can. It also carries a robust coverage ratio based on its distributable cash flow (operating cash flow minus maintenance capex), which stood at 1.7 times last quarter. Like Energy Transfer, it has increased its growth capex spending this year to take advantage of attractive opportunities. After reducing its growth project spending to only $1.6 billion in 2022, it plans to spend between $4 billion and $4.5 billion this year, up from $3.9 billion a year ago. It currently has $6 billion in growth projects set to come online this year, paving the way for solid growth over the next couple of years. Trading at a forward EV/EBITDA ratio of under 10 times, the stock is attractively valued. Western Midstream Partners (NYSE: WES) is an income-oriented investor's dream. The stock has a robust 9.4% yield and plans to grow its distribution by mid-to-low single digits annually. It ended last year with leverage of under 3 times, which is very low for a midstream company, so it's in strong financial shape. The company's contracts generally have cost-of-service protections and/or minimum volume commitments (MVCs). MVCs require a customer to ship a minimum volume of product -- such as natural gas, natural gas liquids (NGLs), or crude -- through its pipelines or pay as if they did. Like take-or-pay contracts, they help ensure future cash flows and mitigate risk against volume declines. It's not pursuing as much growth as either Energy Transfer or Enterprise, but it is looking for safe, high-return organic growth projects that are supported by MVCs. It said it is in close contact with its customers and can quickly reduce or increase its capex based on their needs. In the event it can't find attractive growth projects, it said it could consider acquisitions or stock buybacks. The stock is a good value, trading at a forward EV/EBITDA ratio of 9 times 2025 analyst estimates. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Geoffrey Seiler has positions in Energy Transfer, Enterprise Products Partners, and Western Midstream Partners. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Here Are My Top 3 High-Yield Pipeline Stocks to Buy Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
4 days ago
- Business
- CNBC
Lightning Round: QXO will go higher, says Jim Cramer
'Mad Money' host Jim Cramer weighs in on stocks including: QXO, Gentex, Energy Transfer, and Trade Desk.
CNBC
4 days ago
- Business
- CNBC
Cramer's Lightning Round: QXO can go higher
QXO: "I think this stock actually is going to go higher. Why? Because it's Brad Jacobs. He will not let it stay down here." Gentex: "I cannot believe how low its gotten. It's a very good company." Energy Transfer: "ET is an absolutely terrific company...I do prefer ONEOK more." Trade Desk: "I should have told people to pull the trigger after that one unfortunate quarter that Jeff Green had." Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest
Globe and Mail
5 days ago
- Business
- Globe and Mail
Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter.
Most top dividend stocks strive to boost their payments at least once a year. However, some companies are even more generous. They aim to give their investors a raise every single quarter. That enables investors to collect a very steadily rising income stream. Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN), Energy Transfer (NYSE: ET), and W.P. Carey (NYSE: WPC) have been hiking their high-yielding payouts each quarter for the past few years. While future payments are not guaranteed, these look like ideal stocks to buy to collect a very steadily rising stream of passive income. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A powerful plan to grow its dividend Clearway Energy currently pays a $0.4384 per-share dividend ($1.75 annualized). The clean energy company has a 5.7% dividend yield at its current rate and share price. The company generates very stable cash flow by selling clean energy to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs). The company has been raising its dividend each quarter (it hiked its payout by 1.7% last quarter), and it's targeting to pay a total of $1.76 per share in dividends this year. It aims to deliver 6.5% dividend-per-share growth next year and raise its payment in the bottom half of its 5%-8% long-term target range in 2027. Powering Clearway's growing dividend is its investmentstoexpand its clean energy portfolio. For example, it recently bought an operational solar farm in California and a wind farm in Washington. The company also agreed to re-power the Mt. Storm Wind project in West Virginia by installing larger turbines. It will sell the power from that project to Microsoft under a 20-year PPA. The company uses its post-dividend free cash flow and balance sheet flexibility to fund growth investments. Lots of fuel to increase its lucrative payout Energy Transfer currently pays a quarterly distribution of $0.3275 per unit ($1.31 annualized). That gives the master limited partnership (MLP) a 7.3% yield at its recent unit price and distribution level. The energy midstream company aims to raise its distribution by $0.0025 per unit each quarter ($0.01 annualized), which works out to a 3% to 5% annual growth rate. The MLP, which sends its investors a Schedule K-1 federal tax form each year -- so unitholders will have a little extra paperwork -- generates very stable cash flow because fee-based assets supply about 90% of its annual earnings. Energy Transfer aims to distribute a little more than half of its stable earnings to investors, retaining the rest to invest in growing its operations and maintaining a rock-solid financial profile. Energy Transfer is investing about $5 billion into growth capital projects this year, which should come online through the end of next year. Those expansions will supply it with incremental sources of cash flow as theyenter commercial service. It has many more projects under development that it could approve in the future. Meanwhile, its strong balance sheet gives it the financial flexibility to make accretive acquisitions as opportunities arise. It bought WTG Midstream last year in a $3.3 billion deal that will add $0.04 per unit to its cash flow this year, increasing to $0.07 per unit by 2027. The company's growth investments give it the fuel to raise its payout each quarter. Dual dividend growth drivers W.P. Carey recently raised its dividend payment to $0.89 per share ($3.56 annualized). The real estate investment trust (REIT) has a 5.7% yield at its current payout level and share price. The landlord has been increasing its payment every quarter since resetting its dividend in 2023 when it exited the office sector by selling and spinning off those properties. It raised its payment by $0.005 per share each quarter last year and has been hiking it by $0.01 per share each quarter this year. Two factors drive W.P. Carey's steadily rising dividend. The REIT invests in single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalation. About half of its leases tie rental rates to inflation, while most of the remaining contracts raise rents at a fixed annual rate. These leases supply it with very stable and steadily rising rental income. In addition, W.P. Carey uses its post-dividend free cash flow, non-core assets sales, and balance sheet flexibility to buy additional income-producing properties secured by leases with built-in rental escalation. This strategy supplies it with a growing income stream to support its steadily rising dividend. Get paid more each quarter Clearway Energy, Energy Transfer, and W.P. Carey have been raising their dividend payments each quarter. That's adding to their already lucrative income streams. It makes them ideal dividend stocks to buy for those who want to collect a very steadily rising stream of passive income. Should you invest $1,000 in Energy Transfer right now? Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Clearway Energy, Energy Transfer, and W.P. Carey. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
5 days ago
- Business
- Yahoo
Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter.
Clearway Energy has a clear strategy to increase its quarterly dividend. Energy Transfer aims to raise its big-time payout by 3% to 5% per year. W.P. Carey has dual growth drivers pushing its quarterly payout higher. 10 stocks we like better than Energy Transfer › Most top dividend stocks strive to boost their payments at least once a year. However, some companies are even more generous. They aim to give their investors a raise every single quarter. That enables investors to collect a very steadily rising income stream. Clearway Energy (NYSE: CWEN.A)(NYSE: CWEN), Energy Transfer (NYSE: ET), and W.P. Carey (NYSE: WPC) have been hiking their high-yielding payouts each quarter for the past few years. While future payments are not guaranteed, these look like ideal stocks to buy to collect a very steadily rising stream of passive income. Clearway Energy currently pays a $0.4384 per-share dividend ($1.75 annualized). The clean energy company has a 5.7% dividend yield at its current rate and share price. The company generates very stable cash flow by selling clean energy to utilities and large corporate customers under long-term, fixed-rate power purchase agreements (PPAs). The company has been raising its dividend each quarter (it hiked its payout by 1.7% last quarter), and it's targeting to pay a total of $1.76 per share in dividends this year. It aims to deliver 6.5% dividend-per-share growth next year and raise its payment in the bottom half of its 5%-8% long-term target range in 2027. Powering Clearway's growing dividend is its investments to expand its clean energy portfolio. For example, it recently bought an operational solar farm in California and a wind farm in Washington. The company also agreed to re-power the Mt. Storm Wind project in West Virginia by installing larger turbines. It will sell the power from that project to Microsoft under a 20-year PPA. The company uses its post-dividend free cash flow and balance sheet flexibility to fund growth investments. Energy Transfer currently pays a quarterly distribution of $0.3275 per unit ($1.31 annualized). That gives the master limited partnership (MLP) a 7.3% yield at its recent unit price and distribution level. The energy midstream company aims to raise its distribution by $0.0025 per unit each quarter ($0.01 annualized), which works out to a 3% to 5% annual growth rate. The MLP, which sends its investors a Schedule K-1 federal tax form each year -- so unitholders will have a little extra paperwork -- generates very stable cash flow because fee-based assets supply about 90% of its annual earnings. Energy Transfer aims to distribute a little more than half of its stable earnings to investors, retaining the rest to invest in growing its operations and maintaining a rock-solid financial profile. Energy Transfer is investing about $5 billion into growth capital projects this year, which should come online through the end of next year. Those expansions will supply it with incremental sources of cash flow as they enter commercial service. It has many more projects under development that it could approve in the future. Meanwhile, its strong balance sheet gives it the financial flexibility to make accretive acquisitions as opportunities arise. It bought WTG Midstream last year in a $3.3 billion deal that will add $0.04 per unit to its cash flow this year, increasing to $0.07 per unit by 2027. The company's growth investments give it the fuel to raise its payout each quarter. W.P. Carey recently raised its dividend payment to $0.89 per share ($3.56 annualized). The real estate investment trust (REIT) has a 5.7% yield at its current payout level and share price. The landlord has been increasing its payment every quarter since resetting its dividend in 2023 when it exited the office sector by selling and spinning off those properties. It raised its payment by $0.005 per share each quarter last year and has been hiking it by $0.01 per share each quarter this year. Two factors drive W.P. Carey's steadily rising dividend. The REIT invests in single-tenant industrial, warehouse, retail, and other properties secured by long-term net leases with built-in rent escalation. About half of its leases tie rental rates to inflation, while most of the remaining contracts raise rents at a fixed annual rate. These leases supply it with very stable and steadily rising rental income. In addition, W.P. Carey uses its post-dividend free cash flow, non-core assets sales, and balance sheet flexibility to buy additional income-producing properties secured by leases with built-in rental escalation. This strategy supplies it with a growing income stream to support its steadily rising dividend. Clearway Energy, Energy Transfer, and W.P. Carey have been raising their dividend payments each quarter. That's adding to their already lucrative income streams. It makes them ideal dividend stocks to buy for those who want to collect a very steadily rising stream of passive income. Before you buy stock in Energy Transfer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Energy Transfer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Clearway Energy, Energy Transfer, and W.P. Carey. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Want More Money? These 3 High-Yield Dividend Stocks Are on Track to Give You a Raise Every Single Quarter. was originally published by The Motley Fool
