Energy Transfer (NYSE: ET) offers a monster dividend yield. The master limited partnership's (MLP) payout is over 8% these days. That puts it several times higher than the average dividend stock (the S 500's dividend yield is around 1.4%). Further, the pipeline company expects to grow its payout by 3% to 5% per year.

However, the MLP's big payout isn't for everyone. Here's how to determine whether it's the best dividend stock for you.

The main draw of Energy Transfer is its lucrative cash distributions. The MLP currently pays its investors $0.315 per unit each quarter ($1.26 annually), putting its yield at around 8.2%. Put another way, every $1,000 invested into the MLP would produce about $82 in passive income each year.

Continue reading

Source Fool.com