Here's How Many Shares of Energy Transfer You'd Need to Buy for $10,000 in Annual Passive Income
The pipeline giant is still an excellent income investment.
Here's How Many Shares of Energy Transfer You'd Need to Buy for $10,000 in Annual Passive Income
Overview
Energy Transfer (NYSE: ET), 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.
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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.
Details
Source
Originally published at www.fool.com.
