Analysis suggests Energy Transfer (ET)'s 6.3% dividend yield could survive an oil price downturn
Analysis indicates that although Energy Transfer (ET) halved its dividend during the energy downturn in 2020, this move was aimed at strengthening its balance sheet. Its debt-to-EBITDA ratio has now decreased from 5.4x at the end of 2020 to 4.1x, and the company targets an annual dividend growth of 3% to 5%. Given these strategic adjustments, the company's dividend is very likely to be sustained during the next energy downturn.
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