Looking for Big-Time Income and Growth? Energy Transfer Offers a 9.7% Yield and More Than 80% Upside Potential

Energy Transfer (NYSE: ET) currently offers a 9.7%-yielding distribution. A big driver of the master limited partnership's (MLP) high yield is its deeply discounted valuation. It trades at more than 30% below the average Wall Street analysts' price target and over 80% less than it would if it fetched the median-trading multiple of its peers. Because of that, it offers investors the opportunity to earn significant passive income and potentially capture substantial unit-price appreciation.

Here's a closer look at the pipeline giant's value proposition.

Energy Transfer's main draw is its massive cash distribution. The MLP currently pays $0.3075 per unit each quarter, giving it a 9.7% yield at the recent price. While a payout approaching double digits is usually a warning sign, Energy Transfer's big-time payout is safer than it seems. 

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Source Fool.com