■ Increase · July 29, 2026
Energy Transfer ET Extends Dividend Growth Streak to 19 Quarters, Yield at 6.8%
Energy Transfer raised its quarterly distribution to $0.34 per unit, marking the 19th consecutive increase. The MLP's yield now stands at 6.8%, supported by strong cash flow and a $5.5-$5.9 billion growth capex plan.
19th Consecutive Quarterly Distribution Increase
Energy Transfer (ET) has declared a quarterly cash distribution of $0.34 per unit, equivalent to $1.36 on an annualized basis. This represents a more than 3% increase compared to the same quarter last year. The distribution is payable on August 19 to unitholders of record as of August 7. This marks the 19th consecutive quarterly increase, a streak that began in late 2021 after the MLP cut its distribution by 50% in early 2020 to preserve cash and strengthen its balance sheet. The strategy has proven successful, as Energy Transfer now reports its strongest financial position in history. The current distribution exceeds the prior peak of $1.22 per unit.
Strong Cash Flow Supports Growth Plans
Energy Transfer targets annual distribution growth of 3% to 5%, a level the MLP considers highly achievable given its cash flow generation. In the first quarter, distributable cash flow reached $2.7 billion, while total distributions paid were less than $1.2 billion. This excess cash flow funds the company's growth capital program, which is expected to total between $5.5 billion and $5.9 billion in 2024. The MLP has a multi-year backlog of expansion projects, including $9.5 billion in major gas pipeline projects scheduled to enter service through 2030. Additional projects support growing gas power demand, NGL exports, and U.S. oil production. Energy Transfer expects adjusted EBITDA to grow by 15% at the midpoint of its 2024 guidance, underpinning its distribution growth trajectory.
Valuation and Market Position
Despite a more than 20% increase in unit price year-to-date, Energy Transfer trades at 8.5 times forward earnings, the lowest valuation among its MLP peers (which range from 9.5x to 11.5x). The company's strong growth prospects and financial profile position it to deliver a growing income stream and potential price appreciation as earnings expand. For a detailed view of the distribution history, see the dividend history page, and for yield calculations, use the dividend calculator.
What it means for income investors
Energy Transfer's 19-quarter streak of distribution increases reflects a disciplined capital allocation strategy and robust cash flow generation. With a 6.8% yield and a conservative payout ratio, the MLP offers a sustainable income stream backed by a diversified portfolio of energy infrastructure assets.
Reporting based on: The Motley Fool. Figures verified against market data where available.