Is Ultra-High-Yield Energy Transfer a Buy Now?

Businesses change over time. Sometimes that change can turn a once-risky company into an attractive investment, but only if you can overlook the prior history. Here's why Energy Transfer (NYSE: ET) could be a buy now and why some investors may still prefer to own a lower-yielding peer like Enterprise Products Partners (NYSE: EPD). Let's get the bad news out of the way first. Energy Transfer agreed to buy pipeline peer Williams (NYSE: WMB) in 2006. It got cold feet when the energy sector hit a weak patch and worked to scuttle the deal. That was probably the right move for the business, which would have likely needed to load up on debt to get the deal done and/or cut the dividend. However, as part of its effort to get out of the acquisition it had agreed to, the company issued convertible securities that appeared to protect insiders from a dividend cut if the deal had gone through. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool