Is Energy Transfer LP (ET) the Best Dividend Stock of 2024?

Energy Transfer LP (ET) has been making waves in the energy sector, with its strong dividend payout and robust financial performance. As of December 31, 2024, ET's stock price is $19.57, with a market capitalization of $67.07 billion. The company's P/E ratio is 14.39, and its forward P/E ratio is 14.15. ET's 52-week low is $13.6, and its 52-week high is $20.02. The 50-day average is $18.03, and the 200-day average is $16.45. The company's EPS is $1.36, and its forward EPS is $1.58. ET's revenue growth is 0.002, and it has a strong buy analyst rating with 17 opinions.

ET's dividend yield is an attractive 6.7%, with a payout of $1.18 per share. The company has paid dividends for 18 straight years, demonstrating a strong commitment to returning capital to shareholders. ET's dividend payout is supported by its robust cash flow, with operating cash flow of $10.21 billion and free cash flow of $5.72 billion in the latest reporting period. The company's strong balance sheet, with a debt-to-capital ratio of 56.2%, further enhances its ability to maintain its dividend payout.

ET's dividend growth prospects are supported by its strategic acquisitions and organic growth initiatives. The company has made several accretive acquisitions in recent years, expanding its pipeline network and enhancing its earnings potential. Additionally, ET's organic growth projects, such as the expansion of its Permian Basin pipeline network, have increased its throughput and revenue, contributing to its dividend growth prospects.

Analysts expect ET's earnings to grow in the coming years, with projections for between $1.39 and $1.56 in earnings next year and between $1.52 and $1.69 in earnings in 2026. This earnings growth, driven by the company's strategic acquisitions and organic growth initiatives, is likely to support continued dividend growth in the future.

ET's dividend yield is significantly higher than the average dividend yield of the S&P 500 (around 1.5%) and many of its peers in the energy sector. For instance, ONEOK Inc. (OKE), another midstream company, has a dividend yield of around 4.5% as of December 31, 2024. This higher dividend yield makes ET an appealing option for income investors seeking a steady stream of cash distributions.

In conclusion, Energy Transfer LP (ET) is a strong contender for the best dividend stock of 2024 due to its high dividend yield, consistent dividend payout, growth potential, attractive valuation, and strong analyst recommendations. The company's strategic acquisitions and organic growth initiatives, combined with its robust financial performance, make it an attractive option for both income and growth investors. However, it is essential to consider other factors and conduct thorough research before making any investment decisions.