Energy Transfer LP (ET) gave investors something to smile about. On April 23, 2025, the company announced a boost to its quarterly cash distribution, raising it to $0.3275 per common unit for the first quarter of 2025. That’s a more than 3% increase compared to last year. Investors who own units by May 9 will see the cash hit their accounts on May 20.
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Energy Transfer Sends a Clear Message
This move sends a strong signal: Energy Transfer’s cash flow is solid, and management feels confident enough to share more of it with investors. In today’s market, where many companies are holding back, a dividend hike stands out. It’s a vote of confidence in the company’s financial health and future prospects.
Energy Transfer isn’t just surviving — it’s pushing forward. The company runs one of the biggest energy networks in the U.S., with over 130,000 miles of pipeline moving natural gas, crude oil, and refined products across the country. Strategic investments in assets like Lake Charles LNG, Sunoco LP, and USA Compression Partners are helping it stay ahead in a shifting energy landscape.
Mixed Technical Signals
However, there are mixed signals. Despite the upbeat distribution news, Energy Transfer’s stock is down 9.49% year-to-date, and the Overall Technical Indicators Consensus signals a Neutral position. Still, TipRanks’ AI analyst, Spark, rates ET as an Outperform, giving it a score of 79. Spark points to strong earnings and a high dividend yield as reasons to stay bullish long-term.
In a tough environment for energy stocks, Energy Transfer’s decision to raise its payout could make it even more attractive to income-seeking investors. It also hints at broader confidence in the midstream sector, even as market volatility continues to weigh on valuations.
Is Energy Transfer a Good Stock to Buy?
Energy Transfer sports a Strong Buy rating from Wall Street analysts. The average price target for ET stock is $23.22, signaling a 33.07% upside potential.
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