Energy Transfer’s 6.5% yield is outweighed by business complexity
Energy Transfer has a distribution yield of 6.5%, higher than peers like Enterprise Products Partners and Enbridge.
The company’s yield is supported by its midstream energy assets, but its business is more complicated due to its role as managing partner for two publicly traded master limited partnerships.
Energy Transfer’s complexity and past actions have raised trust issues, making its yield less attractive despite trading at a discount to peers.
The company’s complicated structure and history may deter investors seeking simpler, more reliable cash flows from their investments.