News about Energy Transfer

The article argues that Energy Transfer (ET) and Enterprise Products Partners (EPD), two midstream pipeline MLPs, offer high dividend yields of 6.69% and 5.99%, compared with an average of 1.06% for the S&P 500. EPD has raised its dividend for 28 consecutive years, while ET has delivered 19 consecutive quarterly increases. Both rely on fee-based, long-term contracts, and their distribution coverage ratios in the second quarter were 2.2x for ET and 1.9x for EPD. ET reported second-quarter net income of $2.09 billion, up 80.1%, and adjusted EBITDA of $5.07 billion, and raised its annual EBITDA guidance to $18.8–19.1 billion. EPD reported record second-quarter net income of $1.8 billion.

UPS yields about 7.0% and Energy Transfer about 6.8%, so $10,000 would pay $700 or $680 a year. UPS distributed 99% of its free cash flow as dividends over the 12 months to June 2026, with consensus at 96% for fiscal 2026, and its dividend raise slowed to 0.6% in fiscal 2025. Energy Transfer's distributable cash flow covered its distribution 1.78x in fiscal 2025, with 2.11x expected for fiscal 2026, though its net debt stood at 3.98x EBITDA. The article concludes Energy Transfer is the better high-yield pick because its payout has more room to grow within its 3% to 5% target, while UPS's dividend has a thinner cushion.