Energy Transfer: Dividends Still Don't Lie

Summary

  • Under uncertain times, it becomes even more important to follow a few simple yet timeless principles.
  • One such principle is that dividends do not lie and they provide the most reliable way to hack into owners’ earnings.
  • Energy Transfer’s dividend yields are above the historical average, and its dividend safety is near a peak level in a decade.
  • Its stock prices plunged recently due to concerns about oil prices. But its earnings actually show a very weak correlation with oil prices.
  • Hence, the market overreactions because of oil price concerns could actually provide opportunities for long-term investors.
  • This idea was discussed in more depth with members of my private investing community, Envision Early Retirement. Learn More »

The gas pipeline with flags of Russia and EU

Dragan Mihajlovic

Thesis

One of the first investment books I read was Geraldine Weiss' classic entitled Dividends Don't Lie. Highly recommended for investors who have not read it yet. Even though the book was published more than 3 decades ago (in 1988), many

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This article was written by

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Envision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.

He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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