Dividend Investors Shouldn’t Overlook Energy Transfer (ET) This August

Energy Transfer LP (NYSE:ET) is included among the 10 Best Dividend Stocks to Buy in August.

Dividend Investors Shouldn’t Overlook Energy Transfer (ET) This August

An aerial view of an oil rig at sunrise, emphasizing the power of the natural gas transportation industry.

Energy Transfer LP (NYSE:ET) benefits from a well-diversified midstream business that produces strong and steady cash flow. Approximately 90% of its yearly earnings are supported by fee-based contracts, providing stability. The company expects its EBITDA to grow by about 5% this year, driven by the acquisition of WTG Midstream in the previous year, the completion of several organic expansion projects, and favorable market conditions.

Energy Transfer LP (NYSE:ET) has further growth on the horizon, with plans to invest $5 billion in capital projects this year. These include new gas processing facilities, a large natural gas pipeline, and expanded export capacity. Most of these developments are expected to be operational between the second half of 2025 and the end of 2026. As a result, the company anticipates a stronger earnings growth rate during 2026 and 2027, offering clear visibility into its near-term earnings potential.

Energy Transfer LP (NYSE:ET) is also a solid dividend company. On July 24, the company announced a 0.8% hike in its quarterly dividend to $0.33 per share. This marked the company’s 14th consecutive quarter of dividend growth, which makes ET one of the best dividend stocks on our list. As of July 28, the stock supports a dividend yield of 7.42%.

While we acknowledge the potential of ET to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ET and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.