Core Viewpoint - Energy Transfer is positioned as a high-yield investment opportunity with strong total return potential, supported by its robust financial health and ongoing expansion projects [1]. Group 1: Financial Performance - Energy Transfer currently offers a distribution yield of approximately 7.5%, significantly higher than the S&P 500's dividend yield of around 1.1%, making it an attractive option for passive income generation [3]. - The company has maintained a strong financial position, distributing about 50% of its annual cash flows to investors over the past three years, with 90% of these cash flows coming from stable fee-based sources [4]. - The leverage ratio is within the target range of 4.0-4.5 times, providing additional financial flexibility for the company [4]. Group 2: Distribution Growth - Energy Transfer has consistently raised its cash distribution, achieving over 3% distribution growth in the past year, aligning with its long-term target of 3% to 5% annual growth [6]. - The company is expected to continue increasing its high-yielding distribution, with earnings projected to rise by 7% to 10% this year due to the ramp-up of several expansion projects [7]. Group 3: Expansion Projects - Energy Transfer is investing between $5 billion and $5.5 billion into organic expansion projects this year, as part of a multi-year capital spending program [7]. - The company is pursuing multiple expansion projects to grow its gas infrastructure platform, driven by strong gas demand from power producers and AI data centers [8]. Group 4: Investment Outlook - The combination of high income and growth potential positions Energy Transfer as a compelling investment, with expectations for powerful total returns over the coming years [9].

Core Viewpoint - Energy Transfer LP (ET) is showing positive stock performance and is expected to report strong financial results in the upcoming earnings release, indicating potential growth opportunities for investors. Group 1: Stock Performance - Energy Transfer LP's stock closed at $18.75, reflecting a +2.68% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.05% [1] - Over the past month, the stock has increased by 4.58%, which is below the Oils-Energy sector's gain of 14.04% but better than the S&P 500's loss of 1.99% [1] Group 2: Upcoming Earnings - The company is set to announce its earnings on February 17, 2026, with an anticipated EPS of $0.34, representing a 17.24% increase compared to the same quarter last year [2] - Revenue is forecasted to be $26.02 billion, indicating a 33.16% growth year-over-year [2] Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $1.32 per share and revenue of $86.24 billion, reflecting increases of +3.13% and +4.31% respectively from the previous year [3] - Recent analyst estimate revisions indicate optimism regarding the company's business and profitability [3] Group 4: Valuation Metrics - Energy Transfer LP is currently trading at a Forward P/E ratio of 11.75, which is lower than the industry average Forward P/E of 12.37, suggesting a potential discount [6] - The company has a PEG ratio of 0.94, compared to the industry average PEG ratio of 1.73, indicating favorable growth expectations relative to its valuation [7] Group 5: Industry Context - The Oil and Gas - Production Pipeline - MLB industry, which includes Energy Transfer LP, has a Zacks Industry Rank of 189, placing it in the bottom 23% of over 250 industries [8] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Key Takeaways Energy Transfer is set to report Q4 results on Feb. 17, with revenues seen up 33% year over year.ET's fee-based contracts, new gas supply deals and added plants likely supported earnings.ET trades at 9.13x EV/EBITDA vs. industry 10.35x, but estimates have dipped in 60 days.Energy Transfer LP (ET) is expected to post a year-over-year improvement in both revenues and earnings when it reports fourth-quarter 2025 results on Feb. 17, before the market opens. The Zacks Consensus Estimate for ET’s fo ...

Core Viewpoint - Energy Transfer is expected to report its fourth-quarter earnings on February 17, with little anticipation of significant stock price movement following the report [1][2]. Earnings Report Insights - Historically, Energy Transfer's stock has not fluctuated by 5% or more in either direction after earnings reports over the past three years, with the largest movement being a 4.3% gain after the first-quarter 2025 results [2]. - The company has already provided its 2026 guidance, projecting adjusted EBITDA between $17.3 billion and $17.7 billion, indicating a growth of 9% to 10% [4]. - Energy Transfer has warned that its 2025 adjusted EBITDA may fall slightly below the forecast range of $16.1 billion to $16.5 billion [4]. Capital Expenditure and Growth Projects - The company plans to allocate between $5 billion and $5.5 billion for growth capital expenditures in 2026, an increase from the $4.6 billion budgeted for 2025 [5]. - Energy Transfer aims for EBITDA build rates below 6 times for its projects, which are expected to yield mid-teen returns, contributing approximately $900 million in incremental EBITDA once fully operational [5]. Investment Considerations - Investors are advised that buying Energy Transfer stock ahead of earnings is not a significant concern, as it is considered a high-yield dividend stock in the midstream energy sector [6]. - The company offers a robust forward yield of 7.4%, with a coverage ratio of 1.7 times in Q3, and maintains a solid balance sheet [7]. - Energy Transfer has promising growth opportunities in the midstream sector, particularly due to its natural gas assets in the Permian, which provide access to inexpensive natural gas [7].

Core Insights - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and promoting its Top Picks for 2026 [1] - The investment strategy focuses on building a diversified portfolio of high-yielding, high-quality businesses with strong balance sheets and sustainable yields, aimed at generating passive income for retirement [1] Company Background - Samuel Smith, the lead analyst and Vice President, has extensive experience in dividend stock research and holds advanced degrees in engineering and mathematics [1] - The High Yield Investor team includes Samuel Smith, Jussi Askola, and Paul R. Drake, who work together to balance safety, growth, yield, and value in their investment approach [1] Service Offerings - High Yield Investor provides various portfolios including core, retirement, and international options, along with regular trade alerts and educational content [1] - The service features an active chat room for investors to engage and share insights [1]

Core Insights - The investment in Energy Transfer (ET) units yielded a total return of 13.4% in early January, contrasting with a 1% decline in the S&P 500 Index [1] Company Performance - Energy Transfer's Q4 earnings are anticipated, indicating ongoing interest in the company's financial performance [1] Investment Strategy - The article emphasizes the importance of fundamental analysis in making informed investment decisions, highlighting the author's experience in managing a family portfolio [1] - The author aims to provide accessible insights for investors of all experience levels, focusing on clarity and precision in analysis [1] Market Perspective - The author's background in IT offers a unique perspective on technology stocks, while also exploring diverse sectors for investment opportunities [1]

The anticipated earnings per share (EPS) is $0.34, marking a 17.2% increase from the previous year.Revenue is projected to reach $26.02 billion, a 33.2% rise from the same period last year.Energy Transfer is considered undervalued with a forward yield of 7.42%, indicating a positive outlook.Energy Transfer LP, trading on the NYSE:ET, is a prominent player in the energy sector. The company is known for its extensive network of pipelines and energy infrastructure assets. As it prepares to release its fourth-q ...

Analysts on Wall Street project that Energy Transfer LP (ET) will announce quarterly earnings of $0.34 per share in its forthcoming report, representing an increase of 17.2% year over year. Revenues are projected to reach $26.02 billion, increasing 33.2% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 4.8% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during thi ...

Core Viewpoint - The January non-farm payrolls report revealed 130,000 new jobs and a drop in unemployment to 4.3%, leading to a reduction in expected Federal Reserve rate cuts for the year, making ultra-high-yield dividend stocks more attractive for income-focused investors [1][2]. Group 1: Economic Indicators - The non-farm payrolls report for January showed a surprising addition of 130,000 jobs, significantly exceeding Wall Street's expectations of 70,000-80,000 [1]. - Unemployment decreased to 4.3%, indicating a robust job market [1]. Group 2: Federal Reserve Rate Cuts - Predictions for 2.5 rate cuts this year were reduced to 2 following the jobs report, with potential for no cuts until summer if the upcoming consumer price index is below expectations [1]. - The expectation of prolonged higher interest rates diminishes the likelihood of rate cuts, making high-yield dividend stocks more appealing [1]. Group 3: Investment Opportunities - Ultra-high-yield stocks, offering dividends between 7% and 10%, are highlighted as attractive options for investors seeking passive income in a high-rate environment [1]. - Ares Capital Corporation, yielding 9.94%, specializes in financing solutions for middle-market companies and has received a Buy rating from 12 analysts [1][2]. - Energy Transfer, with a 7.16% distribution yield, operates a vast network of energy assets across the U.S. and has an Overweight rating from JPMorgan with a $21 target price [2]. - Healthpeak Properties, a REIT focused on healthcare real estate, offers a 7.24% dividend and has an Outperform rating with a $20 target price [2]. - Plains All American Pipeline, yielding 7.68%, operates midstream energy infrastructure and is poised for a breakout, with a Buy rating and a $25 target price from UBS [2]. - Starwood Property Trust, with a 10.60% dividend yield, operates in various segments including commercial and residential lending, and has an Outperform rating with a $21 target [2].

We screened our ultra-high-yield dividend stocks database for quality companies yielding between 7% and 10%. Five of our favorite companies fall into this group, and all are rated Buy by the top Wall Street firms we cover.Less competition from future rate cuts - When people expect rate cuts, they often buy growth stocks (tech, etc.), anticipating they'll soar when rates drop. But if cuts aren't coming, investors shift focus back to "get paid while you wait" strategies, making dividend income more valuable r ...