ET is a great dividend paying stock.
Hello and welcome to today’s smart money tip.
I hope this article finds you well.
Many in the community have been asking me for stock advice or ideas with money so I’m happy to share one of the stocks that I believe has good upside potential and a healthy dividend.
Of course you will need to do your own research before placing any money. This video is educational only and not an offer to buy stocks as I am not a stock broker.
My professional licensing for retirement planning lies in the insurance world and my best selling book Taming Wall Street gives excellent ideas on how to safely grow your money tax free without all the risks associated with Wall Street.
But let’s jump into today’s stock idea.
Energy Transfer is a natural gas transport group out of Dallas, Texas.
They’ve been in business since 2002 and have 12,812 employees.
A stock research firm by the name of Market Beat has them listed at the #1 natural gas stock out of 36 natural gas stocks they track.
If you blend 20 analysts detailed findings of Energy Transfer 75% say it is a good time to buy, 25% say to hold and see what happens and 0% say to sell this stock at this time.
It carries a lot of upside potential and pays a generous dividend of around 9% annual.
This means if you have $100,000 in Energy Transfer it would pay you $9000 in annual dividend payment.
Market beat says their analysts believe it could go back to $10.06 based on current market conditions.
Before the pandemic Energy Transfer was trading for around $12.70 and have a 15% dividend. Like other stocks, Energy Transfer took a hit with the closing of the economy. It’s considered a recovery stock meaning it took a big drop but now has lots of upside potential as it makes a come back.
Energy Transfer has a market capitalization of $18.02 billion and generates $54.21 billion in revenue each year. The pipeline company earns $3.59 billion in net income (profit) each year or $1.45 on an earnings per share basis.
I’ve day traded this stock and done well, I’ve also held it and collected my dividend which was much better than the bank.
Right now Energy Transfer is trading for around $6.68 with a former purchase price of $12.70 and ananylsts saying it could go to $10.06 as I mentioned before.
For all these reasons, I hold a portion of my diversified stock portfolio in Energy Transfer.
And I am a big fan of dividend paying stocks. In my own portfolio more than 50% of my holdings pay a dividend of 4-9%.
Although we have seen a lot of quick changes in the oil and gas industry with the presidential administration and their desire to make all things green, I still believe this Texas based natural gas group could do well over time.
Natural gas is a great form of energy and used by millions and millions of people.
So maybe Energy Transfer should be one of the stocks you research on your own. I’m not here to tell you do buy or sell, just about the opportunity and why I own it with my own money.
I hope you found this video helpful. For all the reasons listed above, I think Energy Transfer is a great stock for under $7.
Let me know what you think of this stock and opportunity.
Do you own any dividend paying stocks? If so, which ones. Let me know in the comments.
Perhaps they will become one of my future smart money tip videos and articles.
As I wrap up, I wish to remind you, that you are amazing!!
I appreciate you being in my community.