Energy Transfer: Top Dividend Play for Long-Term Income

0:00Energy transfer is killing it as a top dividend play in the energy game, handling about 30% of all natural gas used in the U.S. With a market cap near $68 billion, the stocks delivered 250% returns over the past two decades, jumping to $1,280 if you reinvest those dividends. And get this, it's offering a solid 7% yield heading into 2026. Speaking into the numbers, they just posted their best year ever in 2025 with adjusted EBITDA hitting nearly $16 billion up, 3% from the year before. Fourth quarter alone brought in 4.2 billion, and distributable cash flow clocked $8.2 billion for the full year away above the $4.6 billion in dividends paid out. About 90% of their income comes from steady fee-based contracts, so they're like a reliable toll road, not sweating price swings. Investors are loving the stability, with insiders holding around 10% of the units, showing

1:01real skin in the game. Out of 12 analysts, 10 say buy, and the stocks trading at a 12.7% discount to targets, potentially 20% with. Dividends factored in, for income hunters, that coverage and growth target of 3-5% annually make it a no-brainer. Looking ahead, they're dropping 5-5.5 billion on growth projects in 2026, like upsizing the desert southwest pipeline. To handle 2.3 billion cubic feet a day by late 2029, they've locked in deals with Oracle for data centers, and are in talks for power plants across 13 states, plus new volumes from Permian plants, and expansions. All this sets energy transfer up for another strong run, with EBITDA guidance at 17.45 to 17.85 billion dollars. If you're building long-term income, this infrastructure beast, with locked contracts, is primed to keep paying off. I'm Corey with the story. That's your Durham News Today update.

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