High-Dividend Stock Yields 9%, Has 8 Straight Dividend Hikes And Insider Buying

Oct. 11, 2015 11:24 PM ETEnergy Transfer LP (ET)SUN, SXL44 Comments

Summary

  • This industry leader yields over 9%, with eight straight dividend hikes.
  • Its business model is based on long-term 85-90% fee-based contracts.
  • Insiders have bought shares over the past 45 days.

Let's get this over with - all energy-related stocks are not the same, Mr. Market. In fact, some of them are poised to take advantage of an upcoming change in US energy markets, namely the emergence of liquid natural gas exporting and the development of natural gas trading with Mexico.

Energy Transfer Partners (ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the US.

ETP's subsidiaries include Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. In total, ETP currently owns and operates more than 62,000 miles of natural gas and natural gas liquids pipelines. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in Sunoco Logistics Partners L.P. (SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP owns 100% of Sunoco, Inc. and 100% of Susser Holdings Corporation. Additionally, ETP owns the general partner, 100% of the incentive distribution rights and approximately 44% of the limited partner interests in Sunoco LP (formerly Susser Petroleum Partners LP) (SUN), a wholesale fuel distributor and convenience store operator. ETP's general partner is owned by Energy Transfer Equity (ETE).

(Source: ETP website)

The problem with ETP, is that, like most energy-related stocks, it has been beaten down quite a bit. But, then again, this actually presents long-term income investors with an opportunity to buy it on the cheap.

Actually, the market has started to support many of the high dividend paying energy stocks which we cover in our articles, and ETP is up over 7% in the past week.

This article was written by

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Robert Hauver, MBA, was VP of Finance for an industry-leading corporation for 18 years, and publishes SA articles under the name DoubleDividendStocks. TipRanks rates DoubleDividendStocks in the Top 25 of all financial bloggers, and Seeking Alpha rates us in the Top 5 of several categories, including Dividend Ideas, Basic Materials, and Utilities. 

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Disclosure: I am/we are long ETP. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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