I Keep Adding to Energy Transfer. Here's Why the Yield Isn't the Only Reason.
I'm still willing to buy more shares of the pipeline giant in this messy market.
Overview
I initially invested in Energy Transfer (NYSE: ET), one of the largest midstream companies in the U.S., about 18 months ago. I've increased my position several times since then, and the stock now accounts for 4.2% of my portfolio with a 23% gain.
Many investors buy Energy Transfer for its high forward yield of 6.6%, which is still higher than the 10-Year Treasury's 5.3%. That distribution is easily sustainable because it consumes only around half of its distributable cash flow (DCF) each year. That's also one of my top reasons for buying Energy Transfer, but there are plenty of other reasons to accumulate this pipeline stock.
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Originally published at www.fool.com.