Energy Transfer Continues to Boost Its 7%-Yielding Dividend
The Motley Fool
by newsfeedback@fool.com (Reuben Gregg Brewer)February 26, 2026
AI-Generated Deep Dive Summary
Energy Transfer (NYSE: ET) continues to impress income investors with its consistent dividend growth and a high 7% yield. The company has raised its distribution every quarter for four straight years, showcasing remarkable reliability for those seeking steady income. This growth is backed by strong financials, as Energy Transfer generates distributable income that comfortably covers its distributions at a ratio of 1.8x.
Energy Transfer operates one of the largest midstream businesses in North America, focusing on energy transportation and logistics. Its ability to consistently increase dividends reflects a stable and growing business model. The company's track record of reliable quarterly hikes over the past four years highlights its commitment to returning value to shareholders. Investors should note that while the high yield is attractive, it’s supported by solid cash flow generation, making it a potentially worthwhile investment for those focused on income.
For finance enthusiasts, Energy Transfer’s performance matters because it exemplifies how a company can balance growth with dividend payouts. The combination of a high yield and consistent increases makes it an appealing option for income-focused investors. However, potential buyers should also consider broader market conditions and the risks associated with energy sector investments, such as commodity price volatility and regulatory changes. Overall, Energy Transfer’s ability to deliver steady returns underscores its position as a key player in the midstream space.
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Originally published on The Motley Fool on 2/26/2026