How Energy Transfer (ET) Supports Long-Term Passive Income Strategies

Energy Transfer LP (NYSE:ET) is included among the 12 Best Stocks to Buy Now for Passive Income. 

Energy Transfer LP (NYSE:ET) is a major player in North America’s midstream energy sector, running over 140,000 miles of pipelines that move natural gas, natural gas liquids (NGLs), and crude oil.

Energy Transfer LP (NYSE:ET) is seeing strong momentum, recently posting record levels in gathered volumes, crude oil and NGL transport, and NGL exports. It’s also pouring capital into projects aimed at fueling future growth, including a 1.5 billion cubic feet per day expansion of the Transwestern Pipeline.

A particularly promising growth avenue comes from data centers. The AI boom is driving massive electricity needs, and as of Q2 2025, Energy Transfer LP (NYSE:ET) had roughly 200 requests for data center connections across 15 states. It also struck a deal with CloudBurst to supply natural gas to its Central Texas data centers.

In addition, Energy Transfer LP (NYSE:ET) is a solid dividend company and is one of the best stocks for passive income. The company has raised its dividends for 14 consecutive quarters. Currently, it offers a quarterly dividend of $0.33 per share and has a dividend yield of 7.71%, as of September 22.

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.

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Disclosure: None.