Energy Transfer-The Best Dividend Stock to Invest $1,000 in Right Now

Dividend and Distribution - Energy Transfer pays a quarterly distribution of $0 3225, resulting in a forward yield of 6 5% [4] - The distribution is well covered by distributable cash flow (DCF), with a coverage ratio of 1 8 times last quarter [4] - The company plans to grow its distribution by 3% to 5% annually and aims to buy back stock once its leverage target is achieved [5] Growth Opportunities - Energy Transfer owns one of the largest integrated midstream systems in the U S, with significant expansion opportunities [6] - The company forecasts spending between$ 2 8 billion and $3 billion on growth projects in 2024, with potential to add$ 375 million to $500 million in annual EBITDA [6][7] - Increased power needs from artificial intelligence have led to inbound interest from power plants and data centers, with a new$ 2 7 billion natural gas pipeline project announced [8] Valuation - Energy Transfer trades at an EV/EBITDA ratio of 8 4 times 2024 analyst estimates, one of the lowest among midstream MLPs [12] - Midstream MLPs historically traded at an average EV/EBITDA multiple of 13 7 between 2011 and 2016, indicating Energy Transfer is below historical levels [13] - Analysts project the company to generate $16 9 billion in EBITDA by 2026, up from$ 15 9 billion in 2024 [13]