Energy Transfer Adds a $2.7 Billion Project to Help Fuel Future Dividend Growth

Energy Transfer (NYSE: ET) already pays a lucrative distribution. The master limited partnership's (MLP) payout is 6.7%, putting it several times higher than the S&P 500's dividend yield of 1.2%. Even with that massive yield, the midstream giant aims to grow its distribution by 3% to 5% per year. It should have plenty of fuel to achieve that plan for the next several years. The MLP is adding to its already robust fuel supply by sanctioning a new $2.7 billion pipeline project. Energy Transfer recently announced that it reached a positive final investment decision to build the Hugh Brinson Pipeline, formerly the Warrior Pipeline project. The project will boost natural gas transportation capacity out of the Permian Basin to support growing natural gas demand. The company expects to invest $2.7 billion into the project, which it will build in two phases. It has secured long-term, fee-based commitments from customers to support the project. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool