5 Best Dividend Stocks Paying Over 6%

In this article, we discuss 5 best dividend stocks paying over 6%. If you want to see more stocks in this selection, check out 11 Best Dividend Stocks Paying Over 6%. 

5. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 33

Dividend Yield as of December 27: 8.86%

Energy Transfer LP (NYSE:ET) is a Texas-based company that owns and operates natural gas transportation pipelines and natural gas storage facilities. On October 25,Energy Transfer LP (NYSE:ET) declared a $0.265 per share quarterly dividend, a 15.2% increase from its prior dividend of $0.230. The dividend was paid to shareholders on November 21. This distribution increase reflects another step in Energy Transfer LP (NYSE:ET)’s plan to return higher value to shareholders while maintaining its target leverage ratio of 4.0x-4.5x debt-to-EBITDA. 

On December 8, Citi analyst Spiro Dounis initiated coverage of Energy Transfer LP (NYSE:ET) with a Buy rating and a $16 price target. The sector offers a “compelling combination of growth and yield,” the analyst wrote in a research note.

According to the third quarter database of Insider Monkey, Energy Transfer LP (NYSE:ET) was part of 33 hedge fund portfolios, compared to 36 in the prior quarter. David Abrams’ Abrams Capital Management is the biggest stakeholder of the company, with 22 million shares worth $242.8 million. 

Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:

“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”