Dividends4Life: Undervalued Energy Transfer Has Room to Run in 2020

Dividend Growth Stocks News

Over time, as the price of natural gas starts to improve with the economy, the stock will move up. The distribution has been kept at 30.5 cents per quarter ($1.22 per -annum) for the past two-and-a-half years. At today’s prices, this gives the stock a 14.95% distribution yield.

Energy Transfer (NYSE:ET), the midstream natural gas pipeline and gas gathering company, has an attractive 14.9% distribution yield at today’s price. ET stock, at just over $8 per share, should be trading much higher than it is. Energy Transfer produced results that showed that its high levels of distributable cash flow (DCF) more than cover the costs of its quarterly distributions to partners.

Source: Investor Place

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