Can This 6.3% Yield Survive if Oil Crashes Again?
Energy Transfer offers investors an attractive yield, but a 2020 distribution cut may be a worry for some.
Overview
If you are looking to add some yield to your portfolio, Energy Transfer's (NYSE:ET) 6.3% distribution yield will likely be attractive to you. The one caveat is that it operates in the energy sector, and the last time the sector was in a downturn, Energy Transfer cut its distribution in half. Can this high-yield master limited partnership's (MLP) distribution survive the next energy downturn?
The energy sector has been upended by the geopolitical conflict in the Middle East. With reduced supply, commodity prices have risen. In fact, some of the world's largest energy companies have warned that oil and natural gas prices don't fully reflect the situation. In other words, companies like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) think oil prices could rise even further.
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Originally published at www.fool.com.