Occidental Petroleum (OXY -0.52%) and Energy Transfer (ET -0.29%) are both energy companies. Either one would give you exposure to the sector, but their businesses are dramatically different. The geopolitical conflict in the Middle East has once again highlighted the world's reliance on oil and natural gas. However, it has also highlighted the importance of understanding how the energy stocks you own make money.
Why you should have energy exposure in your portfolio The geopolitical conflict in the Middle East has upended the normal flow of oil and natural gas. The Strait of Hormuz, a key transit chokepoint, has effectively been shut down. It is estimated that around 20% of the world's oil and natural gas flows through the strait, so supply is severely constrained right now. Since oil and natural gas are commodities driven by supply and demand, reduced supply has led to rising prices.
Image source: Getty Images.
The world has been shifting away from carbon fuels and increasingly investing in clean energy. However, the conflict in the Middle East is a clear indication that oil and natural gas remain vital to the normal functioning of modern society. In fact, an all-of-the-above strategy is taking shape for the world's energy demand. That means oil and natural gas will likely remain important for decades to come. Thus, a diversified portfolio should include some exposure to oil and natural gas.
Two different options for your energy bucket That said, the most obvious way to add some energy exposure to your portfolio is to buy an oil and natural gas producer like Occidental Petroleum. Notably, it has operations in the Middle East and Africa, but most of its production and sales are U.S.-based. That means that the company's exposure to the conflict isn't huge.
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Thus, Oxy stands to benefit more from the high prices resulting from the conflict than it is to be negatively affected by it. However, there's a small wrinkle here. The events in the Middle East have again shown that energy prices are highly volatile. Oxy's top and bottom lines are largely dependent on the prices of the commodities it sells, so the company's financial results are also volatile. The stock provides energy exposure but also carries commodity significant risk.
Right now, with energy prices on the rise again, that risk is paying off. But that won't be the case forever. Still, if you believe energy prices are going to continue to head higher in the second half of 2026, Oxy could be the right energy stock for you today. If you are a bit more conservative, however, you will likely prefer Energy Transfer.
Energy Transfer is a midstream master limited partnership (MLP) that owns a large portfolio of energy infrastructure assets across North America. Essentially, it charges energy companies fees for using its assets to move oil and natural gas around the world. The price of the commodities being moved is less important to Energy Transfer's results than the volume. So strong demand is the key to its success.
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While demand tends to be strong through the entire energy cycle, Energy Transfer is a slow-growing business. The goal today is to increase the distribution by 3% to 5% annually. The MLP's lofty 6.5% yield will likely make up most of an investor's return over time. That will be a good fit for a dividend investor, but it may not interest more aggressive investors.
Two examples, but not the only options The truth is, Energy Transfer and Oxy are just two representative options. You could fine-tune your selections even further by including energy giants like Enbridge (ENB +0.82%), Enterprise Products Partners (EPD -0.18%), ExxonMobil (XOM -0.04%), and Chevron (CVX +0.12%), all of which have better dividend histories than Energy Transfer and Oxy, both of which have dividend cuts in their recent pasts.
That said, given Oxy's modest size, it has more growth potential than Exxon or Chevron. And Energy Transfer's yield is higher than both Enterprise and Enbridge. For more aggressive types that believe oil is headed higher still, Oxy could be a good pick. For more conservative types focused on maximizing income, Energy Transfer's high yield could make it a winning pick.
Key Takeaways Liquidia is seeing rapid YUTREPIA adoption, rising referrals, more prescribers and market-share gains.Energy Transfer's 140,000-mile pipeline network supports stable fee-based revenue across key U.S. basins.PBF Energy may benefit as strong refinery utilization offsets high-oil-price input costs. Oil prices are climbing again as the Iran war intensifies. This is creating uncertainty, and the market will likely be volatile. With fears dominating the market, it is an ideal time for investors to increase their allocation to low-beta companies. Stocks that seem to be good bets now are Liquidia Corporation (LQDA - Free Report) , Energy Transfer LP (ET - Free Report) and PBF Energy Inc. (PBF - Free Report) .
What Does Beta of a Stock Measure?
Beta measures the volatility or risk of a particular asset compared to the market. In other words, beta measures the extent of a security’s price movement relative to the market. In this article, we are considering the S&P 500 as the market.
If a stock has a beta of 1, then the price of the stock will move with the market. So, the stock is more volatile than the market if its beta is more than 1. In the same way, the stock is not as volatile as the market if its beta is less than 1.
For example, if the market offers a return of 20%, a stock with a beta of 3 will return 60%, which is overwhelming. Similarly, when the market slips 20%, the stock will sink 60%, which is devastating.
Screening Criteria Using Research Wizard:
We have taken a beta between 0 and 0.6 as our prime criterion for screening stocks that are less volatile than the market. However, this should not be the only factor to be considered while selecting a winning strategy. We need to take into account other parameters that can add value to the portfolio.
Percentage Change in Price in the Last 4 Weeks Greater Than Zero: This ensures that the stocks saw positive price movement over the last month.
Average 20-Day Volume Greater Than 50,000: A substantial trading volume ensures that the stocks are easily tradable.
Price Greater Than or Equal to $5: They must all be trading at a minimum of $5 or higher.
Zacks Rank Equal to 1 (Strong Buy):Zacks Rank #1 stocks indicate that they will significantly outperform the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here are three of the 24 stocks that qualified for the screening:
Liquidia
Liquidia is experiencing rapid growth in YUTREPIA adoption, with increasing patient referrals, expanding prescriber base and rising market share. The company has achieved profitability and is generating positive cash flow, supported by a strong cash position. It is also pursuing expansion into additional indications and larger market opportunities through ongoing and planned clinical developments.
Energy Transfer
Energy Transfer has a stable business model with its huge pipeline network of natural gas, oil and refined petroleum products across 140,000 miles. The partnership has midstream assets in all the key basins in the United States, generating stable fee-based revenues.
The partnership has offered a higher dividend yield than the composite stocks belonging to the industry over the past three consecutive years. For this year, the partnership is likely to see earnings growth of 18.2%.
PBF Energy
PBF Energy is among the leading refiners in the United States. Strong refinery utilization in the United States to meet resilient demand is expected to continue to offset the negative impacts of elevated input costs, driven by high oil prices. This is possibly aiding PBF’s bottom line.
Energy Transfer LP (ET - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this energy-related services provider have returned +6.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Oil and Gas - Production Pipeline - MLB industry, to which Energy Transfer LP belongs, has gained 6.1% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Energy Transfer LP is expected to post earnings of $0.37 per share, indicating a change of +15.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.1% over the last 30 days.
The consensus earnings estimate of $1.43 for the current fiscal year indicates a year-over-year change of +18.2%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +6.6% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Energy Transfer LP.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Energy Transfer LP, the consensus sales estimate for the current quarter of $30.87 billion indicates a year-over-year change of +60.4%. For the current and next fiscal years, $121.01 billion and $126.05 billion estimates indicate +41.5% and +4.2% changes, respectively.
Last Reported Results and Surprise HistoryEnergy Transfer LP reported revenues of $27.77 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.35 for the same period compares with $0.36 a year ago.
Compared to the Zacks Consensus Estimate of $29.28 billion, the reported revenues represent a surprise of -5.17%. The EPS surprise was -7.89%.
Over the last four quarters, Energy Transfer LP surpassed consensus EPS estimates times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Canopy Growth Corporation (âCanopy Growthâ or the âCompanyâ) (TSX: WEED) (Nasdaq: CGC) will release its financial results for the first quarter fiscal
American Express Company (NYSE: AXP) today reported its second-quarter 2026 financial results. The earnings release and supplemental financial data are availab
Energy can be one of the trickiest sectors of the stock market to navigate. Energy literally drives the global economy, from the gas in your vehicle to the electricity powering data centers for artificial intelligence (AI). But the industry can be volatile, with recessions and other events swinging commodity prices and sending companies scrambling in short order.
But if you focus on quality, you can find dependable energy sector dividend stocks with high yields. What does that look like? Three companies instantly come to mind.
First is Energy Transfer (ET +0.24%), a massive midstream company with a 6.6% yield. And Chevron (CVX +0.75%) and ExxonMobil (XOM +1.60%) are two of the world's premier oil majors, with decades of consistency backing up their reputations and generous dividends.
Here's a closer look at why these three stocks can deliver a lifetime of rising passive income.
Image source: Getty Images.
1. Energy Transfer: An oil and gas midstream powerhouse If your goal is to maximize your income from Day 1, it's hard to do better than Energy Transfer's staggering 6.6% yield. Its sprawling network of 140,000 miles of pipelines and storage facilities functions like a toll road, collecting fees as it moves oil and gas throughout the United States. Energy Transfer isn't very sensitive to commodity prices; fees account for 90% of its total revenue.
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Energy Transfer has a significant presence in the Permian Basin, near America's major natural gas export hubs. It's a significant growth opportunity as the country's export activity continues to rise. Management's stated goal is to grow the company's distributable cash flow by 3%-5% annually over the long term, while maintaining a financial cushion in the payout ratio.
Energy Transfer is a master limited partnership (MLP). It doesn't pay corporate income taxes because it passes its profits, losses, and deductions to the limited partners, the unit holders who invest in the company. If you own this stock, you may need to complete a K-1 form as part of your personal tax filing to the IRS.
2. Chevron: An integrated major built for any market Chevron is one of the world's premier integrated oil and gas companies operating across the industry. It performs upstream operations, such as exploration and production, as well as downstream activities, like refining. That diversification helps soften the blow when commodity prices fall during recessions, though the company probably prefers higher oil prices.
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The stock currently yields over 3.7%, and Chevron has increased its dividend for 39 consecutive years. That growth streak spans multiple recessions, even a global pandemic, during which oil prices fell below zero for the first time. It's a testament to management's ability to navigate the energy industry's boom-and-bust cycles. Chevron also has a global footprint, which positions it for growth as global energy needs rise.
It's hard to plan for the long term, but Chevron does have strong growth prospects. Following its acquisition of Hess last year, the company now owns a 30% stake in the Guyana Stabroek Block, one of the largest discoveries in recent history. Management anticipates the company's cash flow growing by around 10% annually through 2030.
3. ExxonMobil: This dividend legend still has a bright future ExxonMobil is the 800-pound gorilla in the industry, the largest oil and gas major in the United States. Like Chevron, it's a global company with upstream and downstream operations. ExxonMobil also has an extensive dividend track record, with 43 consecutive annual increases. The stock yields 2.8%, the lowest of the three, but still nearly three times the passive income they'll find in an S&P 500 index fund.
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Due to its immense size, ExxonMobil has one of the world's strongest balance sheets and has leaned on it during market downturns to preserve its precious dividend. Management has leaned into its oil and gas roots in recent years, acquiring Pioneer Natural Resources in late 2023 to boost its growth prospects and then focusing on efficiency to free up cash flow.
The result? ExxonMobil is sitting pretty with extensive acreage in the Permian Basin and Guyana, which should help drive oil and gas production for the foreseeable future. Even if global oil and gas demand eventually peaks, ExxonMobil and other industry giants will be able to absorb smaller players to preserve their businesses as the industry slowly consolidates. That makes ExxonMobil a safe bet for the long haul.
DALLAS--(BUSINESS WIRE)--Energy Transfer LP (“ET”) today announced the quarterly cash distribution of $0.2111 per Series I Preferred Unit (NYSE: ETprI).The cash distribution for the Series I unitholders will be paid on August 14, 2026 to Series I unitholders of record as of the close of business on August 4, 2026.Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline an.
Preferred shares can offer enticing high-single-digit yields, but they can create a misleading sense of safety. I detail some of the biggest potential traps that retirees often fall into. I also share some of my top preferred picks of the moment.
One of the better ways for income investors to profit from the energy sector is by snapping up shares of a pipeline company. And one of the more appealing pipeline plays is Energy Transfer (ET +0.00%), which transports crude oil and its refined products, plus natural gas.
Energy Transfer is structured as a master limited partnership (MLP). A great benefit of owning units (not shares) in an MLP is the high-yield distributions -- i.e., dividends -- they tend to pay. Sure enough, Energy Transfer's payout is generous enough to generate $1,000 in annual income with relatively few units.
Image source: Getty Images.
Energy Transfer? More like a wealth transfer to investors Energy Transfer currently doles out a quarterly distribution of just under $0.34 per unit. This annualizes to $1.35 -- for a lofty yield of 6.6% -- so an investor needs to hold 741 units to hit the $1,000-per-year mark. That would set you back $15,057 and a little change at the most recent closing unit price.
Why such a high yield, you might ask? That's because an MLP doesn't pay federal income taxes; rather, it's a "pass-through" entity in which, yes, that obligation is passed through to investors. This frees what can be significant amounts of cash for investor-pleasing items like distributions.
There are strict parameters for being an MLP. Such a business must derive at least 90% of its gross income from qualifying sources. In the energy sector, that means the exploration, production, or transportation of energy products.
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Size matters In terms of size, Energy Transfer is the No. 1 energy pipeline operator in the U.S., boasting around 140,000 miles over 44 states. This network is plugged into major oil and gas plays such as the massive Permian Basin in the Southwest.
That size and reach make Energy Transfer a go-to partner for energy companies that need to move product across this country.
The MLP charges fixed fees for the service, making it -- somewhat atypically for the energy sector -- not dependent on the prices of the goods being transported. As such, it can be something of a hedge for falling prices.
In periods of abundance, Energy Transfer frequently dips into the market, buying and selling some of the product it transports. So revenue and profitability can be a bit up and down -- for example, in 2022, its annual top line was almost $90 billion but fell below $79 billion the following year. Then it rose in both 2024 and 2025, landing at $85.5 billion in the latter year.
Ditto for free cash flow (FCF). Since 2022, it has ranged from $3.9 billion to almost $6.5 billion annually, and is usually more than enough to finance the distribution.
Which, by the way, typically gets a marginal (albeit very reliable) raise every single quarter. Since Energy Transfer began paying its quarterly distribution in 2006, it has risen steadily to the current level. Management has indicated that it aims to keep growth at 3% to 5% annually.
The power of the payout It's been mission accomplished thus far, so I think it'll be able to hit that goal in the coming quarters and years. Energy Transfer always thrives and is laser-focused on delivering what income investors most want. The MLP is an excellent dividend -- sorry, distribution -- equity to own.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Energy Transfer LP (ET - Free Report) .
Energy Transfer LP currently has an average brokerage recommendation (ABR) of 1.26, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.26 approximates between Strong Buy and Buy.
Of the 19 recommendations that derive the current ABR, 16 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 84.2% and 5.3% of all recommendations.
Brokerage Recommendation Trends for ET
Check price target & stock forecast for Energy Transfer LP here>>>
The ABR suggests buying Energy Transfer LP, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ET?In terms of earnings estimate revisions for Energy Transfer LP, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $1.43.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Energy Transfer LP. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Energy Transfer LP may serve as a useful guide for investors.
AlTi Global Inc. acquired a new stake in Energy Transfer LP (NYSE:ET – Free Report) during the first quarter, according to its most recent filing with the SEC. The firm acquired 65,458 shares of the pipeline company’s stock, valued at approximately $1,263,000.
Several other hedge funds and other institutional investors also recently made changes to their positions in ET. Basepoint Wealth LLC acquired a new position in Energy Transfer during the 4th quarter valued at about $25,000. Gables Capital Management Inc. grew its position in shares of Energy Transfer by 60.0% during the 4th quarter. Gables Capital Management Inc. now owns 1,600 shares of the pipeline company’s stock worth $26,000 after buying an additional 600 shares during the period. Sarver Vrooman Wealth Advisors acquired a new stake in shares of Energy Transfer during the 4th quarter worth approximately $32,000. Navalign LLC bought a new stake in shares of Energy Transfer during the fourth quarter worth approximately $37,000. Finally, Vermillion Wealth Management Inc. raised its stake in shares of Energy Transfer by 69.5% during the fourth quarter. Vermillion Wealth Management Inc. now owns 2,351 shares of the pipeline company’s stock worth $39,000 after buying an additional 964 shares during the last quarter. 38.22% of the stock is owned by institutional investors and hedge funds.
Analyst Ratings Changes A number of equities analysts have issued reports on ET shares. Scotiabank reaffirmed an “outperform” rating on shares of Energy Transfer in a research note on Tuesday, May 12th. TD Cowen reiterated a “buy” rating and set a $24.00 target price (up from $23.00) on shares of Energy Transfer in a research report on Thursday. Truist Financial began coverage on Energy Transfer in a research note on Tuesday, March 24th. They issued a “buy” rating and a $23.00 price target on the stock. Weiss Ratings restated a “buy (b)” rating on shares of Energy Transfer in a research report on Friday, June 5th. Finally, Barclays reaffirmed an “overweight” rating and set a $23.00 price objective (up from $22.00) on shares of Energy Transfer in a research note on Thursday, May 14th. Three analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Energy Transfer presently has an average rating of “Buy” and an average price target of $23.55.
View Our Latest Analysis on Energy Transfer
Energy Transfer Stock Down 0.2% Shares of NYSE:ET opened at $20.28 on Tuesday. The company has a 50 day moving average price of $19.53 and a two-hundred day moving average price of $18.88. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.93 and a current ratio of 1.17. The company has a market capitalization of $69.77 billion, a PE ratio of 16.90, a PEG ratio of 1.18 and a beta of 0.55. Energy Transfer LP has a 52 week low of $16.18 and a 52 week high of $20.70.
Energy Transfer (NYSE:ET – Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The pipeline company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.05). Energy Transfer had a return on equity of 9.77% and a net margin of 4.66%.The firm had revenue of $27.77 billion for the quarter, compared to the consensus estimate of $25.78 billion. During the same period in the prior year, the business earned $0.36 earnings per share. The company’s revenue for the quarter was up 32.1% compared to the same quarter last year. Analysts forecast that Energy Transfer LP will post 1.43 earnings per share for the current year.
Energy Transfer Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Friday, May 8th were issued a dividend of $0.3375 per share. This is a boost from Energy Transfer’s previous quarterly dividend of $0.34. This represents a $1.35 annualized dividend and a yield of 6.7%. The ex-dividend date was Friday, May 8th. Energy Transfer’s dividend payout ratio is presently 112.50%.
Energy Transfer Company Profile (Free Report)
Energy Transfer (NYSE: ET) is a Dallas-based midstream energy company that develops and operates infrastructure for the transportation, storage and processing of hydrocarbons. The company’s operations focus on moving and storing natural gas, natural gas liquids (NGLs), crude oil and refined products through an integrated network of pipelines, terminals, storage facilities and processing plants. Energy Transfer provides core midstream services such as gathering, compression, fractionation, processing, and bulk transportation to support production and downstream supply chains.
Its asset base spans an extensive network across the United States, connecting producing regions, processing centers, petrochemical hubs and coastal and inland markets.
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Broderick Brian C purchased a new position in Energy Transfer LP (NYSE: ET) during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 125,000 shares of the pipeline company's stock, valued at approximately $2,412,000. Several other hedge funds and other institutional investors have also
The ongoing earnings season, investor concerns about the durability of AI demand and spending, and geopolitical risks are key factors that have been contributing to stock market volatility in recent trading sessions.
In this scenario, investors seeking steady income can consider adding dividend stocks to their portfolios. Recommendations of top Wall Street analysts can help them pick attractive dividend stocks that are backed by solid cash flows to support consistent payments.
Here are three dividend-paying stocks that are highlighted by Wall Street's top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
ConocoPhillips Oil and gas exploration and production company ConocoPhillips is this week's first dividend pick. With a dividend of 84 cents per share (annualized dividend of $3.36 per share), COP offers a dividend yield of 3%. The company is scheduled to announce its second-quarter results on Aug. 6.
Ahead of second-quarter results, Wells Fargo analyst Sam Margolin reiterated a buy rating on COP stock with a price target of $183. Despite the pressure on oil prices from an increase in OPEC production quota, the analyst finds ConocoPhillips and Shell stocks appealing as the earnings season approaches. He cited their operational visibility and resilience as factors backing their appeal.
The 5-star analyst expects ConocoPhillips to meet its production guidance of 2.2 million barrels of oil equivalent per day at the mid-point. He expects lower Waha natural gas prices in the Permian Basin to be offset by stronger Brent crude premiums. Margolin expects capital expenditure to remain within COP's prior guided range of $12.2 billion annualized, with no significant impact on spending on the Northfield East project in Qatar despite the Strait of Hormuz disruption.
Overall, Margolin expects COP to generate about $3.5 billion in free cash flow (before working capital) and earnings per share of $2.94. He expects continued strength in COP's free cash flow and regular dividend growth through the completion of the Willow project in 2028/2029. Prior to the Willow project coming online, the analyst expects free cash flow to grow by about $2 billion in 2027 and 2028, assuming Brent crude averages around $60 per barrel.
"COP's track record of capital efficiency and strong Permian well productivity underpins its ability to pursue long-cycle developments," said Margolin.
Margolin ranks No. 457 among more than 12,300 analysts tracked by TipRanks. His ratings have been successful 70% of the time, delivering an average return of 13.3%. See ConocoPhillips Financials on TipRanks.
Energy TransferEnergy Transfer is a limited partnership that operates 140,000 miles of pipeline and associated energy infrastructure. With a quarterly cash distribution of 33.75 cents per common unit ($1.35 per unit on an annualized basis), ET offers a yield of 6.8%.
Heading into Energy Transfer's Q2 earnings on Aug. 4, Jefferies analyst Julien Dumoulin-Smith reaffirmed a buy rating on ET stock with a price target of $23. The analyst noted that his adjusted earnings before interest, taxes, depreciation, and amortization estimate of $4.46 billion is 1% below the Street's consensus of $4.49 billion.
The 5-star analyst noted that Energy Transfer has slightly outperformed Enterprise Products Partners recently. However, it still trades at a relative discount of 19% compared to EPD, which is below its historical discount range of 17%-20%. Smith believes that ET stock could be re-rated higher if the company provides a clearer long-term strategy for natural gas growth.
Furthermore, Smith expects the current energy market to support a stronger outlook for natural gas liquids and crude oil. "The current energy macro backdrop positions ET to benefit in all three commodities," said the analyst.
He expects Energy Transfer's adjusted EBITDA to grow at a 4.8% compound annual growth rate in 2027-2030, which is 1%-3% above Wall Street's expectations. In fact, Smith sees the possibility of additional upside if ET announces more natural gas projects. He added that investors will await details on final investment decisions on new natural gas projects and any clues about additional projects in the pipeline. The analyst noted that ET has announced new gas projects consistently in recent quarters.
Smith ranks No. 550 among more than 12,300 analysts tracked by TipRanks. His ratings have been profitable 64% of the time, delivering an average return of 10.4%. See Energy Transfer Statistics on TipRanks.
ChevronFinally, let's look at energy giant Chevron, which is scheduled to announce its second-quarter results on July 31. Last month, the company paid a quarterly dividend of $1.78 per share. At an annualized dividend of $7.12, CVX offers a dividend yield of 3.92%.
Ahead of Q2 earnings, Jefferies analyst Lloyd Byrne reiterated a buy rating on Chevron stock and lowered his price target to $216 from $236. Byrne expects the company to report adjusted EPS of about $5.86 per share, nearly 9% above the Street's expectations.
The 5-star analyst highlighted that the challenges seen in Chevron's upstream business in the first quarter due to the disruption at the Tengizchevroil joint venture in Kazakhstan, Storm Fern downtime, and the Middle East conflict have largely been resolved. Consequently, Byrne expects production to recover in the second quarter to about 4,033 mboepd. He expects the upstream business to generate adjusted earnings of about $8.1 billion in Q2 2026.
Meanwhile, Byrne expects Chevron to generate downstream adjusted earnings of about $4.4 billion in Q2, with strength in both domestic and international markets. The downstream business benefited from higher crack spreads and strong refining performance.
Additionally, the analyst expects Chevron to generate $18.2 billion in cash flow from operations (before working capital changes), driven by stronger earnings and about $2.2 billion in dividends from affiliated companies. Unlike the first quarter, Chevron is not expected to make a TCO loan repayment in Q2, providing an additional boost to cash flow.
Byrne ranks No. 409 among more than 12,300 analysts tracked by TipRanks. His ratings have been successful 56% of the time, delivering an average return of 17.5%. See Chevron Ownership Structure on TipRanks.
Energy Transfer (ET +0.52%) has gotten off to a strong start this year. It's up more than 24% year-to-date, significantly outperforming the nearly 9% rise in the S&P 500.
I expect the master limited partnership (MLP), which sends a Schedule K-1 Federal tax form, will continue to outperform in the back half of the year. Here's a look at what fueled its strong first half, and why the second half could be just as strong.
Image source: The Motley Fool.
Hitting the gas Energy Transfer hit a speed bump last year. The MLP's earnings growth rate slowed considerably. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) only rose 3.2% last year, down from the 10% compound annual growth rate it delivered from 2020 through 2024. Growth slowed due to weaker energy market conditions, fewer expansion project completions, and a lack of acquisitions. As a result of its slower growth, Energy Transfer's unit price slumped 15.8% last year.
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20.31
This year, however, has been a different story. Energy Transfer currently expects to generate between $18.2 billion and $18.6 billion of adjusted EBITDA this year. That's 13.9% to 16.4% higher than last year. It's also higher than the pipeline company's initial forecast of $17.5 billion to $17.9 billion of adjusted EBITDA. Fueling the surge are stronger-than-expected energy market conditions driven by the war with Iran, expansion project completions, and acquisitions closed by its affiliated MLPs (Sunoco LP and USA Compression Partners). The MLP's reacceleration is helping drive its unit price higher.
Second-half catalysts Despite the first-half surge in its unit price, Energy Transfer has the lowest valuation in its peer group:
ET EV to EBITDA data by YCharts
That suggests it has more room to run, especially as it captures additional catalysts. One likely driver is further upward revisions to its 2026 financial guidance. Most oil market analysts expected that the Strait of Hormuz would have fully reopened by now, enabling oil to flow freely to the global economy. Instead, Iran has continued to attack ships trying to pass through the Strait, leading the U.S. to resume military operations against the country, including reimposing the Naval blockade. That should keep upward pressure on oil prices.
While Energy Transfer doesn't produce oil and has limited direct exposure to oil prices, it should still benefit from higher pricing. Higher prices will incentivize U.S. oil companies to drill more wells this year, increasing volumes across Energy Transfer's crude oil pipelines and export terminals. Additionally, its system helps move oil in and out of the Strategic Petroleum Reserve, which will likely continue to drain this year.
Energy Transfer will also likely secure additional expansion projects this year. The company has already approved several new growth projects, including a $600 million gas pipeline lateral to support new gas-fired power plants. Gas demand is surging due to AI data centers, which should enable Energy Transfer to capture additional expansion opportunities later this year.
Ample fuel to continue outperforming Energy Transfer has crushed the S&P 500 through the first half of this year, driven by its accelerating growth. I think that outperformance will continue in the back half of this year, fueled by an improving valuation, upward guidance revisions, and new project approvals. That makes it a compelling investment right now even after its first-half surge.
The world is about to enter an unprecedented period of energy demand growth. Artificial intelligence has immense power needs. Couple that with other demand catalysts, such as electric vehicles and advanced manufacturing facilities, and the world will need much more energy in the coming decades. Electricity demand in the U.S. alone could grow 60% by 2045, six times faster than it has grown over the past 20 years.
The coming power surge is driving me to boost my energy stock investments. Here are three I'd buy with my next $1,000.
Image source: Getty Images.
Bloom Energy Bloom Energy (BE +3.51%) is a leading developer of advanced fuel cells. The company's technology is rapidly becoming the go-to choice for powering data centers. Data center developers can't get enough of its fuel cells. Global investment firm Brookfield Asset Management recently expanded its AI infrastructure partnership with Bloom Energy to $25 billion, a five-fold increase from its initial $5 billion partnership last October. That follows a similar expansion by cloud giant Oracle, which will now deploy up to 2.8 gigawatts of Bloom's fuel cells at its data centers to accelerate its AI infrastructure build-out.
These and other deals are powering robust growth for Bloom Energy. Its revenue surged more than 130% in the first quarter to over $750 million, along with a significant improvement in profit (operating income increased $91.3 million to $72.2 million). Bloom now expects to deliver 80% revenue growth this year, up from its prior guidance of 60%. It should continue growing rapidly as more companies deploy its on-site power solutions. Despite robust growth, Bloom Energy shares are currently 40% below their recent high, making its valuation much more attractive.
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7.25
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$
213.98
Brookfield Renewable Brookfield Renewable (BEPC 0.68%)(BEP 0.13%) is a leading global renewable energy platform. It operates hydro, wind, solar, and storage assets secured by long-term contracts with inflation escalators. That enables it to generate stable, growing cash flow to support its more than 4.5% yielding dividend.
The company expects to deploy $9 billion to $10 billion of capital over the next five years to grow its global platform. It plans to invest around $850 million per year to develop additional renewable energy assets, with the remaining funds allocated to acquisitions. These investments, along with rising power prices, should drive annual growth in funds from operations per share of more than 10%. That should support continued dividend growth of 5% to 9% per year. With its share price down nearly 25%, Brookfield has high-powered total return potential.
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33.85
Energy Transfer Energy Transfer (ET +0.52%) is a master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form each year. It's one of the country's largest energy infrastructure operators, with assets spanning pipelines, processing plants, storage terminals, and export facilities.
The MLP is investing heavily to capitalize on the growth of gas power demand. It's building several pipeline laterals to supply gas directly to data centers (including Oracle's) and new gas-fired power plants. Additionally, it's building several new large-scale gas pipelines to increase gas flow across the country, including the $2.7 billion Hugh Brinson Pipeline and the $5.6 billion Desert Southwest Pipeline expansion. These and other projects should fuel its growth through the end of the decade. That will give the MLP more cash to grow its high-yielding distribution (nearly 7% yield), which it aims to increase by 3% to 5% per year. Energy Transfer's combination of income and growth should drive strong total returns for investors in the coming years.
High-octane return potential The world will need a lot more energy in the coming years to support AI and other demand catalysts. That should drive robust growth for Bloom Energy, Brookfield Renewable, and Energy Transfer. It's why I plan to invest $1,000 into the trio in the coming month.
Matt DiLallo has positions in Brookfield Asset Management, Brookfield Renewable, Brookfield Renewable Partners, and Energy Transfer and has the following options: short August 2026 $150 puts on Bloom Energy. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, and Oracle. The Motley Fool recommends Brookfield Renewable and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.
Energy Transfer LP (ET - Free Report) closed at $20.20 in the latest trading session, marking a +1.46% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 1.47%.
Shares of the energy-related services provider witnessed a gain of 6.19% over the previous month, beating the performance of the Oils-Energy sector with its gain of 0.92%, and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Energy Transfer LP in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 4, 2026. In that report, analysts expect Energy Transfer LP to post earnings of $0.37 per share. This would mark year-over-year growth of 15.63%. Simultaneously, our latest consensus estimate expects the revenue to be $30.75 billion, showing a 59.78% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.43 per share and revenue of $121.19 billion, which would represent changes of +18.18% and +41.69%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Energy Transfer LP. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Energy Transfer LP currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Energy Transfer LP has a Forward P/E ratio of 13.97 right now. This valuation marks a discount compared to its industry average Forward P/E of 14.38.
One should further note that ET currently holds a PEG ratio of 1.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Production Pipeline - MLB stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Energy Transfer (ET +2.62%) is one of the largest midstream energy companies in the United States, with more than 140,000 miles of pipeline for transporting crude oil, natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), and other refined products.
The company recently upgraded its 2026 growth capital expenditure (capex) guidance to $5.5 billion to $5.9 billion, up from an initial estimate of $5 billion to $5.5 billion, demonstrating its shift to a cycle of growth.
For income and growth investors, this elevated spending level carries several critical implications.
Image source: Getty Images.
The build-out is connected to a backlog This isn't speculative "build-it-and-they-will-come" spending. Management has stated these projects are underpinned by long-term, fee-based volume commitments targeting mid-teens returns. A substantial portion of this capital is flowing toward meeting the massive demand for natural gas-fired electricity generation to support artificial intelligence (AI) data centers.
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20.18
The company has announced three major gas pipeline projects this year, in addition to three pipeline laterals designed as direct connections to end users, so it already has waiting customers for its projects.
Key drivers for these projects include the gas-to-electricity trend, especially for fueling data centers, and growth in natural gas liquids exports. For example, Energy Transfer's Texas network will supply natural gas to the Nexus Hubbard Campus in central Texas, fueling the on-site generation that powers their new AI hyperscale facility.
Energy Transfer's aggressive capital spending is being driven by a combination of generational shifts in power demand, regional production gluts, and a deliberate decision to pivot away from high-risk megaprojects toward immediately accretive infrastructure.
Its dividend is safe, even with expansion plans In past cycles, a heavy capex budget might have raised red flags regarding the safety of the partnership's distribution. However, Energy Transfer's financial footing is solid. The company raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to between $18.2 billion and $18.6 billion, meaning the company has immense cash flow.
In the first quarter, Energy Transfer reported revenue of $27.7 billion, up 32% year over year. Adjusted EBITDA was $4.94 billion, up 20.5% over the first quarter of 2025, and distributable cash flow (DCF) was $2.7 billion, up 16.8% year over year.
The company's DCF easily covers its 6.77% distribution yield, as of its current share price, and provides a heavy multibillion-dollar internal equity cushion to self-fund this growth. Dilutive equity issuance to fund this backlog is off the table.
Energy Transfer said it plans to keep raising distributions by 3% to 5% each year. It's increased its distributions for 18 consecutive quarters.
Investors may need to be patient While the projects are high-return, infrastructure takes time to build and commission. Because billions of dollars are actively tied up in construction work in progress (CWIP), they are not yet generating EBITDA.
Energy Transfer's shares have risen by more than 19% this year, but that trend may slow. The company's spending plans will likely keep the company's forward valuation multiple compressed in the near term, at just below 13 times forward earnings. The true rerating and subsequent free cash flow inflections are more likely to be a late-2027 and 2028 story once these assets go into service.
Because the company is allocating more capital to organic projects rather than aggressively buying back units or overindexing on distribution hikes, investors should expect management to stick to its conservative 3% to 5% annual distribution growth target. It strikes a clear balance: Reward unit holders today while fully capitalizing on a generational build-out of energy infrastructure.
When it comes to dividend investing, my absolute favorite sector is midstream master limited partnerships (MLPs). These stocks offer both high yields and increasing distributions.
As MLPs, the correct term is actually distributions, not dividends, as typically a large percentage of their payouts are deemed a return of capital and are taxed deferred until the stock is sold (if your cost basis reaches zero, you'll also start paying taxes in the future). It does come with a little extra paperwork come tax time, but it is well worth it, in my view.
Let's look at three of my favorite midstream MPLs, which are businesses that ship, store, or process oil.
1. Energy Transfer
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$
19.66
Energy Transfer (ET 0.66%) is one of my largest holdings and remains a favorite. The reasons are simple.
First, it's cheap both relative to its peers and historically, trading at a forward enterprise value (EV)-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of just 8.5. That compares to the average 13.7 multiple that midstream MLPs traded at between 2011 and 2016.
Second, the company has one of the best growth project backlogs in the midstream sector. Its position in the Permian basin -- an oil patch with some of the cheapest natural gas in the U.S. -- has enabled it to pursue multiple high-return growth projects focused on delivering low-cost natural gas to areas with high demand, including artificial intelligence data centers. This year, it is pouring between $5.5 billion and $5.9 billion into organic growth projects.
Finally, the stock's 6.8% yield is attractive, and it plans to increase its distribution by 3% to 5% a year. Its balance sheet is in solid shape, and its strong earnings provide a robust distribution coverage ratio.
Altogether, the stock offers both solid income generation and some nice stock appreciation potential.
2. Enterprise Products Partners
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-0.05
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-0.02
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$
37.27
One of my longest-held holdings is Enterprise Products Partners (EPD 0.05%), which I've owned since 2008. This is a sleep-well-at-night stock with an attractive yield (5.8%) and a steady distribution growth rate (about 3%).
The company has raised its distribution for 27 consecutive years. Given the economic and energy market scares during this stretch, that's impressive. Enterprise is conservative by nature, and its balance sheet is one of its biggest strengths. It has just 3.2 times leverage, which is low for the midstream industry, and it's locked in low-cost debt (4.7% average interest rate) over the long term (17-year average maturity).
Although this is a bit of a transition year for the company, it is projecting double-digit percentage EBITDA and cash flow growth next year as some large projects come online in the second half of this year. As such, it could be a good time to add the shares ahead of this growth spurt.
Image source: Getty Images.
3. Western Midstream
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-0.56
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44.62
If you're looking for a stock with an even higher yield than Enterprise and Energy Transfer, Western Midstream (WES 0.56%) is a strong option. The stock currently yields 8.2% and targets mid-to-low single-digit percentage annual distribution growth. It also has a strong balance sheet, with leverage of about 3.
Western has also been repositioning its asset base recently through acquisitions. It dove headfirst into the waste water-handling business in the Permian through its acquisition of Aris Water Solutions, and it recently brought online a second produced-water treatment pilot facility, which it hopes will lead to its first commercial-scale facility. Meanwhile, its big produced-water transportation pipeline, Pathfinder, is projected to be in service starting in Q1 of next year, linking it to its new North Loving II processing train, which is expected to come online in Q2 of 2027.
In addition, Western recently acquired a natural gas and crude oil gathering platform in the Permian, helping expand its presence in the U.S.'s most important oil basin. The deal is expected to be immediately accretive to its cash flow while maintaining its current leverage.
This is another stock I personally own and think continues to look attractive at current levels, trading at a forward EV/EBITDA multiple of just 9.3 times.
Chasing unsustainable high yields can give investors a false sense of progress toward retiring on dividends. Popular funds like SCHD offer safety but only 3% to 3.5% yields, stretching out the timeline to retire on dividends longer than the traditional 4% rule allows. I detail some 7-10% yields that look built to last.
Three hundred thousand dollars sits in an awkward zone for income investors. It is too large to ignore and too small to coast on. With the 10-year Treasury recently around 4.4% and the federal funds target range at 3.50% to 3.75%, the question is how to make this account pay without taking more risk than the income is worth.
The answer depends heavily on one decision: how much yield you are willing to chase, and what you are willing to give up to chase it.
The Three Doors A $300,000 Portfolio Opens The arithmetic is simple. Multiply the portfolio by the yield, divide by twelve, and you have a monthly paycheck. The hard part is choosing which door to walk through.
Door one: the 3% to 4% conservative tier. A blended yield of 3.5% on $300,000 produces $10,500 a year, or about $875 a month. That is the smallest check on this page, and it is also the one most likely to grow. Philip Morris International (NYSE: PM) raised its quarterly dividend from $1.35 to $1.47 in 2025, and management’s 2026 adjusted diluted EPS forecast is $8.36 to $8.51. The recent yield is about 3.2%, and PMI has increased its annual dividend every year since becoming public in 2008.
Door two: the 5% to 7% moderate tier. A 6% blended yield turns $300,000 into roughly $18,000 a year, or $1,500 a month. Net-lease REITs and midstream partnerships live here. Realty Income (NYSE: O) yields about 5.2%, pays monthly, and reported 114 consecutive quarterly dividend increases in March 2026. Energy Transfer (NYSE: ET) yields about 7.1% on a $0.3375 quarterly distribution, with 2026 adjusted EBITDA guided to $18.2 billion to $18.6 billion. The catch with ET is the K-1 tax form and energy-cycle exposure.
Door three: the 8% to 12% aggressive tier. A 10% blend produces $30,000 a year, or $2,500 a month. The price of admission is principal volatility. Main Street Capital (NYSE: MAIN) declared regular monthly dividends of $0.265 for July, August, and September 2026, plus a $0.30 supplemental dividend payable in June. NAV per share was $33.46 on March 31, 2026. Stretch further into mortgage REITs or leveraged covered-call funds and you can reach 12% to 14%, but payout cuts and principal erosion become larger risks.
The Trap In Picking The Biggest Check The $2,500 monthly check is seductive next to the $875 one. The trap is treating those two numbers as static.
Realty Income’s monthly dividend has climbed to $0.271 in 2026, while Philip Morris went from $0.46 quarterly in 2008 to $1.47 today. A 3.5% yield growing 7% a year roughly doubles the income in about 10 years. A 12% yield with flat or shrinking distributions delivers more income in year one but may lose purchasing power over time. Energy Transfer cut its quarterly distribution from $0.305 to $0.1525 in 2020 before rebuilding it.
For a 60-year-old planning a 30-year retirement, the door-one paycheck does not surpass a static 10% payout quickly. A $10,500 income stream growing 7% a year overtakes a flat $30,000 payout around year 16. It takes longer if the aggressive portfolio starts at 12%. The point is not speed. It is that growth eventually matters more than the first check.
What To Do With The $300,000 Match the tier to the gap, not the wish. If Social Security and a pension already cover essentials, the conservative tier can preserve optionality. If $300,000 is the entire nest egg and you need every dollar of income now, a blended 6% to 7% portfolio may be the realistic middle. Stress-test the yield against a cut. Model each holding at a 25% distribution reduction. If the resulting income breaks your budget, the position is too large.
Compare total returns, not headline yields. A price chart alone can mislead because it leaves out dividends. Compare Realty Income, Main Street Capital, and Philip Morris over the same period with dividends included, then check how much of the return came from income versus principal growth.
The Right Door Is the One You Can Keep Open
A $300,000 portfolio will not replace a six-figure salary at any realistic yield. It can deliver a meaningful supplement, and possibly a growing one, if the yield tier fits the rest of the retirement plan. The right portfolio is not the one with the biggest first check. It is the one the investor can still live with after rate changes, dividend cuts, taxes, and market cycles.
Contact [email protected] for any questions or corrections.
When evaluating energy stocks as long-term positions, investors need to consider liquefied natural gas (LNG). Demand for that energy source is expected to jump by 700 million tons annually by 2050, representing a 65% surge from 2025 levels, according to Shell's LNG Outlook 2026.
Yes, 2050 is a long way off, but market participants need not worry about that. Other estimates indicate the global LNG market is on pace to grow at a compound annual growth rate of 7.1% from this year through 2035.
Liquefied natural gas (LNG) demand is soaring. These stocks could benefit. Image source: Getty Images
Predictably, some investors are apprehensive. The commodity itself and natural gas stocks have reputations as volatile instruments, but the good news is that some stout fundamentals support the LNG expansion trade. As just two examples, China's LNG imports are up 258% since 2016, and over that period, the number of LNG-importing countries rose to 49 from 36, according to Shell.
Add to that the fact that the past decade has seen the U.S. morph into an LNG behemoth. This country is now the world's largest exporter of that commodity, so there is an element of patriotism in the LNG equity trade. That's a positive for red, white, and energy independence, and these energy stocks could mint green on the back of LNG demand growth.
A familiar face ExxonMobil (XOM +2.31%) is typically viewed as an oil stock, and that's an accurate assessment, as the company is one of the world's largest producers of oil. It's also a major LNG player and is investing in that segment. Exxon has four large-scale LNG projects under way and expects to double its LNG portfolio by 2030 from 2020 levels. Those projects could lift the producer's LNG output by 40 million metric tons annually.
That is to say, the energy giant is bullish on LNG's trajectory. Exxon sees LNG demand rising by 3% annually through 2050, noting that by that year, natural gas will power 20% of global industrial activity. So it's clear there's demand for LNG, but meeting it requires scale. Not all companies possess it, but Exxon does.
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$
139.59
Exxon's been one of the dominant names in the natural gas space for four decades, and it's engaged in LNG infrastructure, production, and transportation in a variety of markets, including Africa, Australia, and Papua New Guinea. In the first quarter, the company boosted U.S. LNQ exports by 5%.
A pure LNG play Investors seeking purity in liquefied natural gas stocks may want to consider Cheniere Energy (LNG +2.48%). Cheniere sure lives up to its ticker. A decade ago, it became the first U.S. company to export LBG, and two years ago, it became the largest domestic LNG producer.
Those are the headlines. Getting into the "nitty gritty" of the Cheniere story, like Exxon, this energy company is investing to meet future LNG demand. Cheniere is working on three expansion projects, one of which is expected to be fully operational this year, with the other pair coming online in 2028 and 2029. One of the attractive points of this energy stock is the long-term contracts the company inks with LNG customers, which provide clarity and stability.
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6.10
Current Price
$
252.19
Speaking of the long-term, Cheniere may be appealing to patient investors because it's a cash flow king. The company generated $1.67 billion in distributable cash flow in the first quarter. That was enough to increase its 2026 distributable cash flow forecast to $4.75 billion to $5.25 billion, up from $4.35 billion to $4.85 billion.
The dividend idea With a yield of 7.1%, Energy Transfer (ET +2.18%) rightfully earns its place in the conversation about oil dividend stocks. It's also deserving of its place at the LNG table because natural gas liquids are central to this midstream operator's pipeline suite, which is among the largest in the North American midstream space.
Said another way, Energy Transfer doesn't get its hands "dirty" with the production of natural gas liquids, but it is one of the premier intrastate and interstate transmitters of those products. There's clear demand for natural gas pipelines, underscoring why Energy Transfer is investing heavily in that part of its business.
In the first quarter, the company's natural gas liquids and refining business posted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of $185 million, confirming an impressive growth trajectory.
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2.18
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0.42
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$
19.67
There's an artificial intelligence (AI) angle here as well. Due to Energy Transfer's status as the king of Texas pipelines, it can meet fresh demand from data center hyperscalers looking to source energy straight from basin regions.
DALLAS--(BUSINESS WIRE)--Energy Transfer LP (NYSE: ET) today announced the pricing of its offering of $650,000,000 aggregate principal amount of Series 2026A junior subordinated notes due 2057 (the “Series 2026A notes”) and $1,100,000,000 aggregate principal amount of Series 2026B junior subordinated notes due 2057 (the “Series 2026B notes,” and together with the Series 2026A notes, the “junior subordinated notes”) each at prices to the public of 100.000% of their face value. Initially, the Ser.
Energy Transfer stands out among energy infrastructure plays, providing investors stability with fee-based earnings predictability. ET has outperformed sector peers since April, as investors rotated back. As the energy infra trade now regains buying momentum after the earlier year's pro-cyclical fervor, ET is well positioned to benefit from this market rotation. The massive, multi-trillion-dollar AI CapEx buildout through the decade is expected to drive sustained demand for ET's diversified pipeline infrastructure.
Energy Transfer (ET +1.39%) and Occidental Petroleum (OXY +1.86%) represent two different ways to invest in the growing demand for crude oil and natural gas. Energy Transfer, which operates more than 140,000 miles of pipeline across 44 states, is one of the largest midstream companies in North America. Occidental Petroleum, better known as Oxy, is a major upstream player that also operates a smaller midstream business.
Both stocks have rallied nearly 20% this year as rising oil prices drove more investors to the energy sector. But which stock will generate bigger gains in the second half of the year?
Image source: Getty Images.
Energy Transfer is more stable than Oxy Energy Transfer transports natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, and other refined products through its pipelines. As a midstream company, it only charges downstream and upstream companies tolls to use its infrastructure.
Therefore, Energy Transfer is better insulated from volatile oil prices than its own clients. Its pipelines also transport significantly more natural gas than crude oil, giving it greater exposure to surging demand for natural gas among AI data center operators. It's also fully covered its distributions with its adjusted distributable cash flow (DCF) over the past few years.
Today's Change
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19.32
Oxy generates most of its revenue from its upstream business, which flourishes when crude oil prices surge but flounders when they decline. That's because high oil prices boost its revenues much faster than its operating expenses.
The price of WTI crude oil has declined from a four-year high of $112.25 per barrel in mid-May to about $69 today. That sounds worrisome, but Oxy merely needs WTI crude oil prices to stay above $40-$45 per barrel to support its current capex and dividends. Its free cash flow (FCF) will also grow rapidly as long as oil remains above $60 per barrel.
Today's Change
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0.89
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$
48.83
Which stock will deliver bigger gains for the rest of the year? Energy Transfer trades at just seven times this year's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and it could be revalued as a higher-growth AI infrastructure play as data centers consume more natural gas. It also pays a high forward yield of 6.9%. Oxy looks even cheaper at four times this year's adjusted EBITDA, but it pays a lower forward yield of 2.3% and will struggle if oil prices drop even further.
Therefore, as someone who's not certain where oil prices will head in the second half of 2026, I think Energy Transfer is a better energy pick right now than Oxy. Its business model is more stable, it pays a higher yield, and it has more exposure to the growing AI market.
Energy Transfer (ET +1.39%), one of the largest midstream companies in the United States, is usually considered a stable income investment rather than a market-beating one. But since the start of the year, its stock has rallied 17% and outperformed the S&P 500's 9% gain. Let's see why it beat the market, and why it could maintain that momentum in the second half of 2026.
Image source: Getty Images.
Why is Energy Transfer beating the market? Energy Transfer operates over 140,000 miles of pipeline across 44 states. It transports natural gas, liquefied natural gas (LNG), natural gas liquids (NGLs), crude oil, and other refined products through its pipelines. It also exports some of its natural gas products.
Unlike big oil stocks, which benefited from higher oil prices in the first half of 2026, Energy Transfer isn't as heavily exposed to fluctuating commodity prices since it simply charges upstream and downstream companies "tolls" to use its infrastructure. As long as oil and gas keep flowing through its pipelines, it will generate plenty of cash to support its dividends.
Today's Change
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0.27
Current Price
$
19.32
Nevertheless, the soaring demand for oil and natural gas still boosted its crude oil and NGL volumes to record levels in the first quarter of 2026. It also secured major long-term agreements with utilities and data centers to supply natural gas to the booming AI market, transforming it from a reliable income play to a higher-growth AI infrastructure stock.
Why will Energy Transfer continue to beat the market? In the first quarter, Energy Transfer predicted its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would rise 14%-16% in 2026. That was up from its prior outlook for 9%-12% growth, and would mark an acceleration from its 3% growth in 2025.
With an enterprise value of $135.3 billion, Energy Transfer trades at just seven times this year's adjusted EBITDA and pays a high forward yield of 6.9%. As more investors rerate it as an AI infrastructure play, its valuation will rise, driving its stock to outperform the S&P 500.
Energy Transfer will also remain a reliable stock for income-seeking investors. In 2025, its adjusted distributable cash flow (DCF) of $8.2 billion easily covered its $4.6 billion in total distributions, and that low payout ratio gives it plenty of room for future hikes. It also blends a return of capital with its income to pay more tax-efficient distributions.
However, Energy Transfer is a master limited partnership (MLP) that technically treats you as a partner rather than a regular shareholder. Therefore, you'll need to report its income separately on a K-1 form when you file your taxes every year. If you're fine with that extra step, Energy Transfer could offer a compelling blend of growth and income for the foreseeable future.
Energy Transfer remains a Strong Buy, driven by robust 12.5% adj. EBITDA growth targets and a compelling income profile. ET trades at a 26.2% EV/EBITDA discount to peers despite sector-leading growth and resilient segment performance. Strategic investments, export terminal expansions, and SUN's acquisition-driven EBITDA surge reinforce ET's forward growth trajectory.
Do you need reliable passive investment income? Dividend stocks are arguably your best bet. Although you can do pretty well with bonds, too, most high-quality, higher-yield dividend stocks regularly raise their payouts. Bonds don't.
And if you're looking for a great one to own right now, consider buying a piece of oil and gas pipeline operator Energy Transfer (ET +0.47%) while its forward-looking dividend yield is right at 7%. A $42,500 purchase of 2,239 shares will generate $3,000 in annual -- and growing -- dividend income.
Image source: Getty Images.
An ideal business model for generating dividends It may be in the energy business. Unlike more familiar energy names like Chevron and ExxonMobil, though, its bottom line isn't tethered to the ever-changing price of oil.
Rather, with access to a network of 140,000 miles' worth of pipelines spanning much of the United States, Energy Transfer's business is simply getting natural gas and crude oil from point A to point B, regardless of the price of what's being pushed through those pipes. The company is only concerned with oil consumption rates, since it effectively operates a tollbooth that generates recurring revenue. This, of course, is an ideal business model for supporting dividends.
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19.15
To this end, recent data from the U.S. Energy Information Administration indicate that consumption of gas and oil hasn't slowed down at all this year despite higher prices for both. This persistent consumption is also the chief reason the company's now been able to raise its per-share payment for five consecutive years ... every year since the wind-down of the COVID-19 pandemic.
Maybe not for everyone There is one key consideration. That is, Energy Transfer is technically organized as a master limited partnership (MLP), which has specific tax-filing requirements. Partnerships are not terribly complicated. But if you're doing your own taxes and aren't familiar with tax forms unique to these entities, this ticker may be more trouble than it's worth.
Or maybe it's worth learning how to handle their tax filing requirements.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.
Granite Real Estate Investment Trust (âGraniteâ) (TSX: GRT.UN) expects to announce its financial results for the second quarter ended June 30, 2026 after t
DALLAS--(BUSINESS WIRE)--Energy Transfer LP (NYSE: ET) today announced that it plans to release earnings for the second quarter of 2026 on Tuesday, August 4, 2026, before the market opens. The company will also conduct a conference call on Tuesday, August 4, 2026 at 8:00 am Central Time/9:00 am Eastern Time to discuss quarterly results and provide a company update. The conference call will be broadcast live via an internet webcast, which can be accessed on Energy Transfer's website at energytra.
Interactive Brokers Group, Inc. (Nasdaq: IBKR) plans to announce its second quarter financial results on Tuesday, July 21, 2026, in a release that will be issu
Energy Transfer LP (ET - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this energy-related services provider have returned -1.1%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Energy Transfer LP falls in, has gained 1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Energy Transfer LP is expected to post earnings of $0.37 per share for the current quarter, representing a year-over-year change of +15.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $1.43 for the current fiscal year indicates a year-over-year change of +17.8%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +6.9% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Energy Transfer LP.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Energy Transfer LP, the consensus sales estimate of $30.75 billion for the current quarter points to a year-over-year change of +59.8%. The $121.19 billion and $126.38 billion estimates for the current and next fiscal years indicate changes of +41.7% and +4.3%, respectively.
Last Reported Results and Surprise HistoryEnergy Transfer LP reported revenues of $27.77 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.35 for the same period compares with $0.36 a year ago.
Compared to the Zacks Consensus Estimate of $29.28 billion, the reported revenues represent a surprise of -5.17%. The EPS surprise was -7.89%.
Over the last four quarters, Energy Transfer LP surpassed consensus EPS estimates times. The company topped consensus revenue estimates times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Energy Transfer LP (ET - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Energy Transfer LP currently has an average brokerage recommendation (ABR) of 1.37, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.37 approximates between Strong Buy and Buy.
Of the 19 recommendations that derive the current ABR, 15 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 79% and 5.3% of all recommendations.
Brokerage Recommendation Trends for ET
Check price target & stock forecast for Energy Transfer LP here>>>
While the ABR calls for buying Energy Transfer LP, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ET Worth Investing In?In terms of earnings estimate revisions for Energy Transfer LP, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.43.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Energy Transfer LP. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Energy Transfer LP.
SmartCentres Real Estate Investment Trust (âSmartCentresâ) (TSX: SRU.UN) announced today that it will be reporting its financial results for the three mont
Energy Transfer (ET +1.50%), one of the largest midstream companies in the United States, is a reliable stock for earning passive income. As a pipeline operator, it's well-insulated from volatile oil and gas prices because it merely charges other companies "tolls" to use its infrastructure.
Image source: Getty Images.
It's also a master limited partnership (MLP) that blends a return of capital with its own income to pay distributions that are more tax-efficient than conventional dividend-paying energy stocks. You'll need to file a separate tax form for that income, but you can use the MLP's reported losses to reduce your taxable income because you're a "partner" rather than an investor. The portion of your distributions classified as a "return of capital" is also tax-deferred until you sell.
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19.23
Energy Transfer has a forward yield of 7.05%. That seems high, but its total distributions only accounted for 56% of its adjusted distributable cash flow (DCF) in 2025. Its adjusted DCF has also comfortably covered its total distributions over the past few years.
To earn $10,000 in annual passive income from Energy Transfer at $19 per share, you'd need to buy roughly 7,465 shares for $141,844. That same investment in the 10-Year Treasury, which currently yields 4.38%, would only deliver $6,213 in annual income.
Leo Sun has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal second quarter ended May 31, 2026. Consolidated Financial Highlights for the Fiscal 20
Energy Transfer common units remain a 'strong buy' due to undervaluation, high quality, and robust, fee-based cash flows. The Series I 9.25% Fixed Rate Perpetual Preferred units offer a 7.4% effective yield, prioritizing downside protection over capital appreciation. ET's preferred payouts are minimal relative to distributable cash flow, with $27 million paid to all preferreds versus $2.7 billion DCF in Q1 2026.
Energy Transfer (ET 1.15%) recently announced an additional expansion of its Nederland NGL Export Terminal. The project will enable the master limited partnership (MLP) to export more natural gas liquids (NGLs) out of that crucial Gulf Coast terminal by the end of the decade. It's the latest expansion of this facility and one of many projects the company has under construction.
Here's a look at the new project, which will give the MLP even more fuel to grow its over 7%-yielding distribution.
Image source: The Motley Fool.
The NGL export juggernaut Energy Transfer plans to increase the ethane export capacity of its Nederland NGL Export Terminal by 240,000 barrels per day (BPD). It also plans to add another 55,000 BPD of LPG export capacity. The company is expanding this facility due to robust customer demand. It has secured long-term contracts for 100% of the facility's ethane export capacity into the 2040s.
The company expects to complete the project in phases starting in 2028. It's expanding its Mont Belvieu-to-Nederland NGL export pipeline and building two additional NGL ship docks (which it expects to complete by the middle of 2029). The company is already expanding its refrigerated propane and butane storage tanks (anticipated completion in the first half of 2027). Once complete, the Energy Transfer will have the largest refrigerated storage capacity on the U.S. Gulf Coast and the capacity to export more than 1.25 million BPD from this facility. Add in the company's Marcus Hook NGL Export Facility along the East Coast (which it's expanding to 420,000 BPD by mid-2027), and Energy Transfer will have about 1.7 million BPD of NGL export capacity by the end of the decade.
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19.00
A massive and growing backlog Energy Transfer's latest Nederland expansion project adds to its already extensive expansion project backlog. The pipeline company plans to spend between $5.5 billion and $5.9 billion on expansion projects this year.
The bulk of its projects are natural gas pipelines. Energy Transfer is investing up to $9.5 billion in major gas pipeline projects, led by the $5.6 billion Desert Southwest Pipeline (anticipated completion by the fourth quarter of 2029). It's also building several pipeline laterals to supply gas to AI data centers and gas-fired power plants. Additionally, the company is expanding several crude oil and NGL pipelines, building additional NGL infrastructure, and constructing more gas processing plants.
These projects give Energy Transfer significant growth visibility. It currently has projects on track to enter commercial service through early 2030. These projects support the company's plans to increase its high-yielding distribution by 3% to 5% per year.
Enhancing its already robust growth profile Energy Transfer is moving forward with another expansion of its key Nederland terminal. This expansion will help further support distribution growth through the end of the decade. The MLP's combination of yield and growth makes it a highly attractive investment opportunity for those comfortable with receiving a Schedule K-1 Federal tax form from the MLP each year.
Matt DiLallo has positions in Energy Transfer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Energy Transfer LP (ET - Free Report) ended the recent trading session at $19.22, demonstrating a +1.75% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.44%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.
The energy-related services provider's shares have seen a decrease of 5.88% over the last month, surpassing the Oils-Energy sector's loss of 7.14% and falling behind the S&P 500's gain of 0.08%.
Market participants will be closely following the financial results of Energy Transfer LP in its upcoming release. It is anticipated that the company will report an EPS of $0.37, marking a 15.63% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $30.75 billion, showing a 59.78% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.43 per share and revenue of $121.19 billion, indicating changes of +18.18% and +41.69%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Energy Transfer LP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.92% higher. Currently, Energy Transfer LP is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Energy Transfer LP has a Forward P/E ratio of 13.26 right now. For comparison, its industry has an average Forward P/E of 13.26, which means Energy Transfer LP is trading at no noticeable deviation to the group.
It's also important to note that ET currently trades at a PEG ratio of 1.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Production Pipeline - MLB industry currently had an average PEG ratio of 1.3 as of yesterday's close.
The Oil and Gas - Production Pipeline - MLB industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 104, positioning it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Energy Transfer is upgraded to "Strong Buy," driven by predictable cash flows, robust yield, and a fee-based business model. ET's Q1 EBITDA rose 20% to $4.9 billion, with recurring growth drivers outpacing one-off items, and guidance for 2026 EBITDA raised to $18.2–$18.6 billion. Significant CapEx pipeline—$15 billion through 2028—positions ET for $2.5–$3 billion incremental annual EBITDA once projects are fully ramped.
American Express Company (NYSE: AXP) plans to host a live audio webcast of its earnings conference call at 8:30 a.m. (ET) on Friday, July 24, 2026, to discuss the company’s second-quarter 2026 financial results.
The webcast will be accessible to the general public through the American Express Investor Relations website at https://ir.americanexpress.com/. The financial results and presentation materials are scheduled to be released and posted on the website at approximately 7:00 a.m. (ET) prior to the conference call, and a webcast replay will be available on the website following the call.
ABOUT AMERICAN EXPRESS
American Express (NYSE: AXP) is a global payments and premium lifestyle brand powered by technology. Our colleagues around the world back our customers with differentiated products, services, and experiences that enrich lives and build business success.
Founded in 1850 and headquartered in New York, American Express’ brand is built on trust, security, service, and a rich history of delivering innovation and Membership value for our customers. We seek to provide the world’s best customer experience every day to a broad range of consumers, small and medium-sized businesses, and large corporations, and we build and manage relationships with millions of merchants across our global network.
For more information about American Express, visit americanexpress.com, americanexpress.com/en-us/newsroom/, and ir.americanexpress.com.
Source: American Express Company
Location: Global
View source version on businesswire.com: https://www.businesswire.com/news/home/20260624306428/en/
Energy Transfer LP (ET - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this energy-related services provider have returned -7.3%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Oil and Gas - Production Pipeline - MLB industry, which Energy Transfer LP falls in, has lost 6.6%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Energy Transfer LP is expected to post earnings of $0.38 per share, indicating a change of +18.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $1.43 points to a change of +18.2% from the prior year. Over the last 30 days, this estimate has changed +3.9%.
For the next fiscal year, the consensus earnings estimate of $1.52 indicates a change of +6.9% from what Energy Transfer LP is expected to report a year ago. Over the past month, the estimate has changed +4.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Energy Transfer LP.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Energy Transfer LP, the consensus sales estimate for the current quarter of $30.75 billion indicates a year-over-year change of +59.8%. For the current and next fiscal years, $121.19 billion and $126.38 billion estimates indicate +41.7% and +4.3% changes, respectively.
Last Reported Results and Surprise HistoryEnergy Transfer LP reported revenues of $27.77 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $0.35 for the same period compares with $0.36 a year ago.
Compared to the Zacks Consensus Estimate of $29.28 billion, the reported revenues represent a surprise of -5.17%. The EPS surprise was -7.89%.
Over the last four quarters, Energy Transfer LP surpassed consensus EPS estimates times. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Energy Transfer LP is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Energy Transfer LP. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
There are many forms of passive income, but the main one for stock investors is dividends. It's a way for investors to be rewarded simply for holding a stock. The amount that stocks pay out varies widely, but if you're looking for a high-yield option, it's worth considering Energy Transfer (ET +0.00%).
At the time of writing, Energy Transfer's distribution yield is 7.1%, with an average of 7.4% over the past five years. Yields fluctuate as stock prices change, but if you invested $14,000 in Energy Transfer and it averaged a yield of just over 7.14%, it would pay out $1,000 annually. If it continued its five-year average, you would only need to invest around $13,514.
Image source: The Motley Fool.
The company operates in the midstream sector of the energy industry, helping transport crude oil, gas, and natural gas liquids. It currently has over 140,000 miles of energy infrastructure and pipelines, one of the largest networks in the country.
Today's Change
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0.00
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0.00
Current Price
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18.75
This won't be a high-flying growth stock in most cases, but its dividend is among the more attractive on the market. It makes money by charging fees (based on volume) to energy production companies that need to use its infrastructure to move product.
It's not structured like a typical company; it's a limited partnership (LP), meaning it passes profits and losses on to investors, which is how it has maintained its high dividend payout. You'll need to handle an extra tax step when dealing with an LP -- like filing a schedule K-1 form -- but Energy Transfer can be a good income addition to your portfolio.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
DALLAS--(BUSINESS WIRE)--Energy Transfer LP (NYSE: ET) today announced an expansion of the Nederland NGL Export Terminal to meet additional customer demand. The project will increase ethane export capacity at Nederland by 240,000 barrels per day (bpd), along with 55,000 bpd of additional LPG capacity. One hundred percent of the ethane export capacity has been committed in long-term agreements running into the 2040’s.
Since Energy Transfer began exporting ethane out of Nederland in 2021, the company has exported over 430 million barrels. This project demonstrates that the continued growth in global NGL demand supports expansion of Energy Transfer’s Nederland assets, which partnered with the company’s wellhead-to-water system platform, creates a best-in-class franchise to provide North American energy to the rest of the world.
As part of these transactions, Energy Transfer will also expand its Mont Belvieu to Nederland NGL export pipeline capacity to service the increased refrigeration capacity and construct two additional NGL ship docks. The company expects its previously announced expansion of the Nederland refrigerated propane and butane storage tanks to 1.2 million barrels and 0.8 million barrels, respectively, to be available in the first half of 2027. These assets, along with Energy Transfer’s existing 1.3 million barrel refrigerated ethane tank, provide the largest refrigerated storage capacity for each of these products of any export complex on the U.S. Gulf Coast.
The expansion project is expected to be placed into service in stages beginning in 2028. Following the anticipated completion of the additional docks in mid-2029, the refrigerated NGL export capacity at Nederland will be greater than 1.25 million bpd. Combined with the Marcus Hook NGL Export Facility capacity of 420,000 bpd (post-expansion mid-2027), Energy Transfer’s total NGL refrigerated export capacity will be approximately 1.7 million bpd.
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns the general partner interests, the incentive distribution rights and approximately 28 million common units (representing 15% of the aggregate outstanding common units and Class D units) of Sunoco LP (NYSE: SUN), the managing member interests in SunocoCorp LLC (NYSE: SUNC), and the general partner interests and approximately 46 million common units (representing 32% of the outstanding common units) of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.
Forward Looking Statements
This news release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results, including costs and other circumstances that may impact capital projects, are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
SummaryEnergy Transfer operates a diversified midstream energy model, generating fee-based revenue across pipelines, storage, exports, and processing, with additional upside from arbitrage and strategic investments.Strong recent performance was driven mainly by acquisitions and higher profits from price differences between energy markets.A large pipeline of projects—many already online or near-term—along with expansion into AI-related data center demand, is expected to drive future cash flow growth.Despite its capital-intensive model and high capex needs, ET’s cash flow generation is expected to support growth investments broadly, with valuation remaining attractive versus peers. pandemin/iStock via Getty Images
Investment Thesis After the analysis of Vistra Corp. (VST) and Constellation Energy Corp. (CEG), it’s time to continue my series of companies in the energy sector with Energy Transfer LP (
1.47K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ET over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
High-yield stocks are attractive for easy-to-understand reasons. When they outpace the S&P 500’s average yield and inflation, they can provide substantial income. But they can also become a double-edged sword for investors. High yields can be, and often are, red flags that point to fundamental changes that have yet to be reflected in dividend payment metrics. Investors' due diligence includes determining what drives the high yield and what the rest of the market thinks of the investment. Fundamentals can be bullish, but the stock price is unlikely to perform as expected if the market isn’t buying it. In this case, high yields are compounded by bullish market sentiment and reasons for investors to buy in.
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Energy Transfer: Transferring Energy Volume Into Investor ReturnsEnergy Transfer Today
ET
Energy Transfer
$18.86 -0.05 (-0.24%)
As of 06/16/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$16.18▼
$20.70Dividend Yield7.16%
P/E Ratio15.72
Price Target$23.45
Energy Transfer NYSE: ET is a master limited partnership (MLP) operating as a midstream energy company. Both factors are important to this investment, as the MLP structure enables tax-advantaged operations and a high dividend yield, while midstream operators are well-positioned in 2026. Their business is underpinned by volume; growth pillars include natural gas, and macroeconomic conditions favor North American operators.
Energy Transfer’s dividend yield is over 7% as of mid-June. The 7% yield appears unsafe at first glance due to the high payout ratio, but that metric is misleading. GAAP earnings are significantly affected by depreciation, a non-cash charge. The more pertinent factors are cash flow and free cash flow, which enable robust coverage. Running at approximately 1.8x the dividend, free cash flow also enables reinvestment to keep the pipelines running and the network expanding.
Analysts' trends are robust for Energy Transfer. MarketBeat’s data reflect improving coverage, strengthening sentiment, and an uptrend in price targets. The consensus target implies about 20% upside for the Buy-rated stock, while the high-end target points to additional upside beyond that. Either level would put ET near a fresh long-term high.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$11.49▼
$18.65Dividend Yield8.11%
P/E Ratio7.75
Price Target$19.00
JBS NYSE: JBS faces headwinds in 2026, but they are offset by a well-diversified business with revenue streams in processed meat and animal by-products. The primary headwind is the U.S. cattle market, which affects the price spread between the cattle they receive and the products they sell. The takeaway for investors is that FQ1’s negative cash burn is seasonally impacted and also affected by one-offs, including accelerated investment. The critical detail is that dividend coverage is reliable in 2026, supported by healthy annualized cash flow and balance sheet.
Analyst trends are bullish for JBS stock, albeit to a lesser degree than ET. Most analysts tracked by MarketBeat are bullish on JBS, giving the stock a consensus Moderate Buy rating with about 50% implied upside. Their sentiment is reflected in institutional activity, which is accumulating shares at approximately a $10-to-$1 pace.
Diversified Energy: Don’t Buy It for GrowthDiversified Energy Today
DEC
Diversified Energy
$13.26 +0.10 (+0.74%)
As of 06/16/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$12.33▼
$18.90Dividend Yield8.75%
P/E Ratio3.77
Price Target$21.83
Diversified Energy NYSE: DEC is a U.S.-focused upstream energy operator, but it is not a traditional exploration company. Instead, it targets existing wells with predictable volumes that it can optimize over time. By focusing on mature wells and operating efficiency, the company aims to generate relatively stable cash flow to support dividends.
The dividend yields approximately 8.8% and is sustainable. The payout ratio relative to earnings suggests reliability, but, again, as with Energy Transfer, free cash flow is what matters. It provides a much lower payout ratio, enabling aggressive buybacks alongside the distribution. Analyst sentiment is bullish, with DEC carrying a consensus Buy rating and an average price target that implies about 66% upside.
Copa Holdings Flies High in 2026 on Growth and YieldCopa Today
$143.25 -1.15 (-0.80%)
As of 06/16/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$99.32▼
$156.41Dividend Yield4.77%
P/E Ratio8.35
Price Target$167.30
Copa Holdings NYSE: CPA is not a newcomer to high-yield watchlists. This Latin American-headquartered airline has been growing at an industry-leading pace for years, driven by industrialization and an expanding middle class. Results in 2026 include double-digit demand, double-digit capacity growth, double-digit revenue growth, and a healthy dividend payment. 2026’s stock price increase has reduced the yield to about 4.8%, which remains high relative to peers and the broad market, and is reliable. The payout ratio is nearly 40% and is compounded by a solid balance sheet and growth outlook.
Analyst sentiment toward Copa remains bullish, with 12 analysts rating the stock a consensus Buy. Coverage and price targets have increased over the trailing 12 months, and the average target implies about 10% upside as of mid-June. That would be enough for a fresh all-time high, while the high-end target leaves room for another double-digit gain.
Smithfield Foods: Undervalued and High-YieldingSmithfield Foods Today
SFD
Smithfield Foods
$25.95 +0.02 (+0.08%)
As of 06/16/2026 04:00 PM Eastern
52-Week Range$21.08▼
$29.81Dividend Yield4.82%
P/E Ratio10.14
Price Target$29.88
Smithfield Foods NASDAQ: SFD is another play on U.S. meat processing, specifically pork. The company is supported by robust demand, aided by tight beef markets and their high prices, with long-term forecasts focusing on expansion plans. The company is expanding and modernizing, which presents near-term capital headwinds and long-term opportunities. As it stands, the dividend helps to offset near-term risks, yielding approximately 4.8% at approximately 49% of earnings, while the valuation offsets more. Trading at only 10x earnings, the stock is cheap compared to Hormel’s 16x, and you get a comparable yield.
SFD stock has a consensus rating of Moderate Buy. Analysts see Smithfield rising to an average price target of $30, which would mark a fresh high if reached. Recent revisions suggest the upper end of the range could move higher if the company continues to execute. Catalysts include resilient demand, prepared foods momentum, and progress on Smithfield’s expansion and modernization strategy.
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Incyte (Nasdaq:INCY) today announced updated clinical data from two Phase 1 studies evaluating the safety, tolerability and efficacy of INCA033989, a first-in-class mutant calreticulin (mutCALR)-targeted monoclonal antibody, in patients with mutCALR-expressing myeloproliferative neoplasms (MPNs). INCA033989 demonstrated rapid, clinically meaningful responses and consistent molecular activity across both myelofibrosis (MF) and essential thrombocythemia (ET), with convergent evidence supporting the potential for disease modification.
These findings are being presented in oral and poster presentations at the European Hematology Association (EHA) 2026 Congress in Stockholm, Sweden (Session: Myeloproliferative neoplasms – Clinical, Presentation numbers: S216, PS1983, PF884).
“The data presented at EHA 2026 demonstrate clinically meaningful and consistent responses with INCA033989 across both myelofibrosis and essential thrombocythemia,” said Pablo J. Cagnoni, M.D., President of Incyte and Global Head of Research and Development. “What distinguishes INCA033989 is its potential to deliver disease control while targeting the biology that drives it. We remain on track to initiate our pivotal ET study by mid-2026 and are actively engaging regulators on a pivotal MF program.”
Results in Patients with Myelofibrosis (MF)
The safety, tolerability, and efficacy of INCA033989 in Type 1 and non-Type 1 patients with MF harboring a CALR mutation is being evaluated in two ongoing Phase 1 studies. Results demonstrate that INCA033989 delivers broad, clinically meaningful improvements across spleen volume, symptom burden and anemia in patients with MF. As a monotherapy and in combination with ruxolitinib, INCA033989 had a manageable safety profile and the majority of patients remained on treatment – no dose-limiting toxicities were observed, and a maximum tolerated dose was not reached.
Monotherapy: INCA033989 was evaluated as monotherapy in patients who were resistant, refractory or intolerant to JAK inhibitor treatment after >12 weeks (JAK R/R/I), or ineligible to JAK inhibitor therapy. The dose escalation cohort evaluated INCA033989 from 24-3500 mg, and the dose expansion cohort evaluated 250 mg and 2000 mg.
INCA033989 monotherapy demonstrated durable clinical benefit, with clinically meaningful improvements across spleen volume, symptoms and anemia across both JAK R/R/I and JAK ineligible patients.
Spleen Volume Reduction (SVR): Rapid and robust spleen volume reductions were observed in patients, with 55% (38/69) and 39% (27/69) of patients achieving the best SVR25 and SVR35 reduction, respectively. At Week 24, 27% (17/62) patients achieved SVR35, including 47% (8/17) JAK ineligible and 20% (9/45) JAK R/R/I. Robust responses were observed in JAK ineligible patients regardless of mutation type (60% [6/10] Type-1 vs. 29% [2/7] non-Type 1). In JAK R/R/I patients, clinically meaningful reductions were observed in 31% (8/26) of Type-1 patients across all evaluated doses at Week 24, and 33% (1/3) of non-Type-1 patients evaluated at 2500 mg, the highest evaluated dose. Symptom Improvement: Improvements in symptoms were also observed in the majority of patients, with 53% of patients achieving at least a 50% best TSS reduction (TSS50). At Week 24, 32% of patients achieved TSS50, including 29% and 33% of JAK ineligible and JAK R/R/I patients, respectively. Anemia: Rapid and durable anemia improvements were observed in most patients, with anemia response occurring in 60% of evaluable anemic patients, and 52% of patients achieved a major anemia response. Improvements in anemia were observed across patients regardless of prior JAK exposure, including 63% of JAK R/R/I patients and 55% of JAK ineligible patients. Molecular: Consistent reductions in variant allele frequency (VAF) were observed across most patients, regardless of prior JAK exposure and mutation type, with 89% of patients achieving a reduction in whole blood mutCALR VAF (Type 1: 90%, Non-Type 1: 88%), and 81% of patients achieving a ≥25% reduction in mutCALR peripheral blood mononuclear cells (PBMC) from baseline (Type 1: 62%, Non-Type 1: 38%). INCA033989 was generally well-tolerated, with 84% (70/83) of patients remaining on therapy at the time of the data cut off. Treatment emergent adverse events (TEAEs) occurred in 92% (76) of patients, with 27% (22) of patients experiencing Grade ≥3 TEAEs, the most frequent of which were cytopenias. No dose-limiting toxicities were observed, and discontinuations due to TEAEs were limited (n=2).
Combination therapy: INCA033989 (dose range: 70 to 2,500 mg) was evaluated in combination with ruxolitinib in patients with MF who experience a suboptimal response to ruxolitinib monotherapy. INCA033989 demonstrated additive, multi-domain clinical activity in patients when administered in combination with ruxolitinib.
SVR: At Week 24, 55% (11/20) and 30% (6/20) of patients achieved SVR25 and SVR35, respectively. Symptom Improvement: 31% (5/16) of patients achieved TSS50 at Week 24. Anemia: Anemia response occurred in 35% (6/17) of evaluable anemic patients. INCA033989 in combination with ruxolitinib was generally well-tolerated, with 76% (16) of patients remaining on treatment at the time of the data cut off.In the combination arm (n=21), all patients experienced TEAEs. Grade ≥3 TEAEs were reported in 67% (14) of patients, most commonly anemia (33%).
Translational data
Clinical response occurred regardless of mutational complexity with SVR, anemia and molecular responses observed in patients with and without high molecular risk (HMR) mutations. 93% of patients with HMR had a reduction in whole blood mutCALR VAF, as did 88% of those without HMR mutations. A reduction in mutCALR-positive hematopoietic stem and progenitor cells (HSPCs) was also seen, indicating activity at the level of disease-initiating cells. "Patients with CALR-mutated MF have distinct disease biology and often respond poorly to available therapies, underscoring the need for treatments targeting the underlying driver of disease," said Claire Harrison, M.D., Professor of MPNs and Deputy Chief Medical Officer, Guy’s and St. Thomas’ NHS Foundation Trust. "What stands out in these data is that INCA033989 produced rapid and robust spleen, symptom and anemia responses, alongside reductions in mutCALR allele burden regardless of HMR mutations, pointing to activity at the level of the disease-initiating clone."
Results in Patients with Essential Thrombocythemia
Inpatients with ET, INCA033989 demonstrated rapid, deep and durable hematologic and molecular responses across both Type 1 and non-Type 1 CALR patients, supporting potential for disease modification in a population resistant or intolerant to prior cytoreductive therapy.
Hematologic Response:
Across doses, 70% (80/114) of patients achieved a complete hematologic response (CHR, platelet count ≤400 × 109/L and leukocytes <10 × 109/L) and 87% achieved complete or partial hematologic response (CHR/PHR, platelet count ≤600 × 109/L and leukocytes <10 × 109/L). 81% of patients with Type 1 mutCALR achieved a durable (>12 weeks) CHR at 750 mg and above; and 50% of patients with non–Type 1 mutCALR achieved a durable CHR/PHR at 2500 mg. The median time to onset of durable CHR was 2.1 weeks. Molecular Response and Disease Biology:
≥25% reduction in mutCALR VAF correlated with durable CHR (nominal P<0.0001, n=103). Of the patients who achieved a CHR and had ≥1 post-baseline VAF assessment, 73% achieved ≥25% reduction in VAF. Durable molecular response was observed in both Type 1 and non–Type 1 mutCALR. A reduction in mutCALR megakaryocytes was seen in both Type 1 and non-Type 1 patients treated with INCA033989 INCA033989 was well tolerated with 95% of patients remaining on treatment. The median duration of INCA033989 exposure was 8.1 months (range from 0.59 to 27.0 months). A low incidence of Grade ≥3 adverse events was observed (19%); the most common were neutropenia (4.4%) and lipase increase (3.5%). Grade ≥3 cytopenia TEAEs occurred in 6% (7/114) of patients; no Grade ≥3 thrombocytopenia TEAEs were observed.
“In patients with ET who were resistant to or intolerant of prior cytoreductive therapy, INCA033989 resulted in rapid and durable normalization of platelet counts with accompanying molecular responses, with the majority of patients achieving a CHR," said John Mascarenhas, M.D., Professor of Medicine at the Icahn School of Medicine at Mt. Sinai and Director, Center of Excellence for Blood Cancers and Myeloid Disorders, The Tisch Cancer Institute. "As there are currently no mutation-specific treatments available for patients with ET, this approach is critically important for this high-risk patient population. These results provide a strong foundation for advancing INCA033989 into a registrational Phase 3 study."
In November of 2025, INCA033989 was granted Breakthrough Therapy designation by the U.S. Food and Drug Administration (FDA) for the treatment of patients with ET harboring a Type 1 CALR mutation who are resistant or intolerant to at least one cytoreductive therapy. A Phase 3 study of INCA033989 in mutCALR positive patients with ET who are resistant or intolerant to at least one prior cytoreductive therapy (EXCALIBUR-ET2, NCT07623200) is being initiated in mid-2026.
More information regarding the EHA 2026 Congress can be found on the EHA website: https://ehaweb.org/connect-network/eha2026-congress.
About Myeloproliferative Neoplasms (MPNs) and Mutations in Calreticulin (mutCALR)
Calreticulin (CALR) is a protein involved in the regulation of cellular calcium levels and normal protein folding. Somatic, or non-inherited, DNA mutations in the CALR gene (mutCALR) can result in abnormal protein function and lead to the development of myeloproliferative neoplasms (MPNs),1 a closely related group of clonal blood cancers in which the bone marrow functions abnormally, overproducing blood cells.2,3 Among two types of MPNs, essential thrombocythemia (ET) and myelofibrosis (MF), mutCALR drives 25-35% of all cases.4 In MF, it is estimated that 70-83% of CALR mutations in the U.S. are identified as Type 1, with 15-30% identified as non-Type 1.4,5 There are currently no targeted therapies for CALR mutations.
Incyte is at the forefront of developing novel therapies for patients with mutCALR ET or MF that target only malignant cells, sparing normal cells, including INCA033989, a first-in-class, mutCALR-specific therapy. INCA033989 received Breakthrough Therapy designation by the U.S. Food and Drug Administration (FDA) for the treatment of patients with ET harboring a Type 1 CALR mutation who are resistant or intolerant to at least one cytoreductive therapy. A Phase 3 study of INCA033989 in patients with ET with a Type 1 or non-Type 1 CALR mutation who are resistant or intolerant to at least one cytoreductive therapy is being initiated (EXCALIBUR-ET2, NCT07623200).
About the INCA33989-101 & INCA33989-102 Trials
The clinical trial program for INCA033989 includes two multicenter, open-label Phase 1 studies, INCA33989-101 (NCT05936359) and INCA33989-102 (NCT06034002). The studies are evaluating the safety, tolerability and efficacy of INCA033989 in ~455 adult (≥18 years old) patients with mutCALR-expressing myeloproliferative neoplasms (MPNs), including essential thrombocythemia (ET) and myelofibrosis (MF).
The primary endpoint of the studies is measured by the number of participants with dose limiting toxicities (DLTs), treatment-emergent adverse events (TEAEs) and the number of participants with TEAEs leading to dose modification or discontinuation. Secondary endpoints include response rates, mean change of ET total symptom score, percentage of MF patients achieving spleen volume reduction, MF patient anemia response, mean change in disease-related allele burden and various pharmacokinetics measures.
For more information on the studies, please visit: https://clinicaltrials.gov/study/NCT05936359 and https://clinicaltrials.gov/study/NCT06034002.
About Incyte®
Incyte is redefining what’s possible in biopharmaceutical innovation. Through deep scientific expertise and a relentless focus on patients, we have built an established portfolio of first-in-class medicines and an extensive portfolio of next-generation medicines across our key franchises: Hematology, Oncology and Inflammation & Autoimmunity.
To learn more, visit Incyte.com and Investor.Incyte.com. Follow us on social media: LinkedIn, X and Instagram.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws, including statements regarding the presentation of data for INCA033989; the potential for disease modification and the potential to benefit patients offered by INCA033989; expectations regarding ongoing and future clinical trials, including the timing of such trials; and Incyte’s aspirations and goals as set forth under the heading “About Incyte.”
Actual results may differ materially from those indicated in the forward-looking statements as a result of various important factors, including the sufficiency of clinical trial data to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; the efficacy or safety of Incyte’s products; Incyte’s ability to achieve commercial success for its products, once approved; Incyte’s ability to obtain and maintain protection of intellectual property for its products and technology; Incyte’s reliance on third parties and partners; the acceptance of Incyte’s products in the marketplace; market competition, sales, marketing, manufacturing and distribution requirements; greater than expected expenses, including expenses relating to litigation or strategic activities; and those risks and uncertainties discussed in greater detail in Incyte’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2025, and its quarterly report on Form 10-Q for the quarter ended March 31, 2026. Incyte disclaims any intent or obligation to update these forward-looking statements.
1 Raghavan, M., Wijeyesakere S.J., Peters L.R., Del Cid N. (2013) Calreticulin in the immune system: ins and outs. Trends in Immunology, 34(1):13-21. Link to source (https://www.cell.com/trends/immunology/abstract/S1471-4906(12)00131-7?_returnURL=https://linkinghub.elsevier.com/retrieve/pii/S1471490612001317?showall=true)
2 Nangalia J. Massie C.E., Baxter E.J., Nice F.L., et al. (2013) Somatic CALR mutations in myeloproliferative neoplasms with nonmutated JAK2. New England Journal of Medicine, 369(25):2391-2405. Link to source (https://www.nejm.org/doi/10.1056/NEJMoa1312542?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub 0www.ncbi.nlm.nih.gov)
3 Klampfl T., Gisslinger, H., Harutyunyan A.S., et al. (2013) Somatic mutations of calreticulin in myeloproliferative neoplasms. New England Journal of Medicine, 369(25):2379-2390. Link to source (https://www.nejm.org/doi/10.1056/NEJMoa1311347?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub 0www.ncbi.nlm.nih.gov)
4 Salzman G. and Mullally A. (2026) Novel strategies targeting mutant calreticulin in essential thrombocythemia and myelofibrosis. Blood, 147(12):1267-1277. Link to source (https://doi.org/10.1182/blood.2025028642)
5 Guglielmelli, P., Maccari, C., Sordi, B. et al. Phenotypic correlations of CALR mutation variant allele frequency in patients with myelofibrosis. Blood Cancer J. 13, 21 (2023). Link to source (https://doi.org/10.1038/s41408-023-00786-x)
View source version on businesswire.com: https://www.businesswire.com/news/home/20260613021335/en/
With inflation still pinching household budgets and energy bottlenecks creating real chokepoints across the U.S. grid, the businesses that physically move molecules from wellhead to power plant have rarely looked more strategic. Pipelines act as literal toll booths in this environment, collecting fees on volumes locked into long-term contracts and insulated from day-to-day commodity price swings. For retail investors hunting income without paying nosebleed valuations, a sub-$30 share price on a top-tier midstream operator is the kind of setup worth a hard second look.
With that in mind, here is one stock trading well under $30 that analysts believe still has meaningful upside, backed by a fortress income stream and a growth backlog tied directly to AI-driven natural gas demand.
Energy Transfer (NYSE: ET) Energy Transfer (NYSE:ET | ET Price Prediction) is one of the largest midstream energy infrastructure partnerships in North America, operating roughly 130,000 miles of pipelines carrying natural gas, NGLs, crude oil, and refined products under a fee-based business model.
Units recently changed hands at $20.01 as of May 21, 2026, which leaves plenty of room under the $30 ceiling and keeps the entry point accessible for smaller portfolios. Despite the move, the stock is still up 25.77% year to date and 21.41% over the past year, showing that buyers have been steadily accumulating without pushing valuation to extremes.
The fundamentals do the heavy lifting here. Energy Transfer carries a market cap near $69.4 billion, a trailing P/E of 17, and a more attractive forward P/E of 12. The consensus is firmly constructive: 5 Strong Buy, 13 Buy, and 3 Hold ratings, with an average analyst price target of $23.32. Recent target hikes have stacked up quickly, including Raymond James moving to $26 with a Strong Buy on May 13 and Scotiabank lifting to $24.
The bull case is straightforward. This is a fee-based toll booth on the country’s energy plumbing, and the toll booth just got busier. Q1 2026 results showed net income of $1.25 billion and adjusted EBITDA of $4.94 billion, up roughly 20% year over year, prompting management to lift full-year 2026 adjusted EBITDA guidance to $18.2 to $18.6 billion, a $750 million increase. Volumes are setting partnership records: in Q4 2025, NGL exports rose 12%, crude oil transportation volumes rose 6%, and NGL fractionation rose 3%, all records.
The income story is the real draw. The most recent quarterly distribution was $0.3375 per unit, paid May 20, 2026, translating to a yield of roughly 6.55%. Distributions have moved up every single quarter for the past two years, climbing from $0.325 in Q1 2025 to $0.3375 in Q2 2026. Layer in catalysts like long-term agreements supplying roughly 900 MMcf/d of natural gas to three Oracle data centers and the Desert Southwest expansion upsized to 2.3 Bcf/d capacity, and the AI-power tailwind has a direct line into Energy Transfer’s fee stream.
The risk that cuts against the thesis is leverage and capital intensity. Total liabilities climbed 16.57% year over year to $92.03 billion, Q4 2025 interest expense hit $910 million on acquisition-related debt, and the partnership took a $277 million non-cash impairment tied to the suspended Lake Charles LNG project. The K-1 tax form also will not suit every investor. Even so, with fee-based contracts averaging 18-year terms across 6+ Bcf/d of contracted capacity, the cash flow profile remains durable.
For income-focused investors comfortable with the partnership structure, Energy Transfer looks like a high-yield toll booth still trading at a discount to where Wall Street thinks it belongs.
The numbers behind Energy Transfer support the bullish setup today, but yields, leverage, and pipeline economics can shift quickly. Do your own research, weigh your tax situation around K-1 filings, and size any position to your personal risk tolerance before acting.
Energy Transfer remains a Strong Buy after a jaw-dropping Q1, with distributable cash flow surging to $2.7B and guidance raised by $750M. ET's growth is shifting from risky greenfield projects to high-ROIC brownfield expansions, leveraging irreplaceable existing assets and short-cycle projects, especially in Texas. Many investors are concerned with ET's debt, but a sub-4.0x leverage ratio is practically here.
