5 Dividend Stocks to Buy According to Stuart Zimmer’s Zimmer Partners

4. Energy Transfer LP (NYSE:ET)

Zimmer Partners’ Stake Value: $18,362,000
Percentage of Zimmer Partners’ 13F Portfolio: 0.27%
Number of Hedge Fund Holders: 36
Dividend Yield: 6.26%

Energy Transfer LP (NYSE:ET) is a diversified midstream energy company based in the United States. Energy Transfer LP (NYSE:ET) announced a quarterly dividend of $0.175 per share on January 25, up 14.8% from the previous payout of $0.1525.

In the fourth quarter, Zimmer Partners sold more than 3.15 million shares of Energy Transfer LP (NYSE:ET) stock, lowering its position by nearly 59%. Nevertheless, the hedge fund still owned more than 2.23 million Energy Transfer LP (NYSE:ET) shares worth $18.36 million at the end of the quarter. Energy Transfer LP (NYSE:ET) is also getting the attention of other smart money, as 36 hedge funds tracked by Insider Monkey reported owning stakes in the company as of the end of the fourth quarter, up from 29 funds a quarter earlier.

Mizuho analyst Gabriel Moreen boosted his price objective on Energy Transfer LP (NYSE:ET) to $14 from $13 on February 18 and maintained a ‘Buy’ rating on the stock. In a research note, Moreen stated that the business offered a “solid” 2022 EBITDA outlook and provided positive commercial updates in several critical sectors.

In its Q2 2021 investor letter, Miller Value Partners talked about Energy Transfer L.P. (NYSE:ET). 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.”