Dividend Investors Shouldn't Overlook Energy Transfer (ET) This August

Energy Transfer LP (NYSE:ET) is included among the 10 Best Dividend Stocks to Buy in August.

Energy Transfer LP (NYSE:ET) benefits from a well-diversified midstream business that produces strong and steady cash flow. Approximately 90% of its yearly earnings are supported by fee-based contracts, providing stability. The company expects its EBITDA to grow by about 5% this year, driven by the acquisition of WTG Midstream in the previous year, the completion of several organic expansion projects, and favorable market conditions.

Energy Transfer LP (NYSE:ET) has further growth on the horizon, with plans to invest $5 billion in capital projects this year. These include new gas processing facilities, a large natural gas pipeline, and expanded export capacity. Most of these developments are expected to be operational between the second half of 2025 and the end of 2026. As a result, the company anticipates a stronger earnings growth rate during 2026 and 2027, offering clear visibility into its near-term earnings potential.

Energy Transfer LP (NYSE:ET) is also a solid dividend company. On July 24, the company announced a 0.8% hike in its quarterly dividend to $0.33 per share. This marked the company’s 14th consecutive quarter of dividend growth, which makes ET one of the best dividend stocks on our list. As of July 28, the stock supports a dividend yield of 7.42%.

While we acknowledge the potential of ET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best and Safe Dividend Stocks to Buy Now and 10 Stocks with Highest Dividend to Buy Right Now.

Disclosure: None.