This 6.9%-Yielding Dividend Has Explosive Growth Potential
Energy Transfer (NYSE: ET) set an ambitious goal. The energy master limited partnership (MLP) wants to return its distribution to its previous level, which is double where it started the year. The company recently took its first step in that direction, increasing the payout by 15% to push the yield up near 7%.
Here's a look at why the energy company believes it can deliver explosive income growth in the coming years.
Energy Transfer slashed its distribution by 50% in 2020 to retain more cash for debt reduction. As a result, the company generated $6.4 billion in excess cash flow after distributions in 2021. That enabled the MLP to reduce its long-term debt by $6.3 billion last year.
Source Fool.com
