1 ‘Strong Buy’ Dividend Stock Offering a 6.3% Yield Right Now
Amit SinghTue, September 15, 2026 at 2:30 AM GMT+3 4 min read
Investors seeking income should consider dividend stocks with high, sustainable yields. These companies have the financial strength to sustain and increase their distributions over time, and may also deliver steady capital gains.
Energy Transfer (ET) currently looks attractive among high-yield dividend stocks, offering a yield of about 6.3%. The midstream energy company has a solid track record of dividend growth, supported by relatively resilient earnings and strong distributable cash flow (DCF). ET stock also has a consensus "Strong Buy" rating on Wall Street, which further strengthens its appeal.
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About Energy Transfer
Energy Transfer owns and operates an extensive energy infrastructure network in the U.S., with assets spanning 44 states. The company's extensive footprint gives it a significant role in transporting, processing, and storing natural gas (NGV26), natural gas liquids (NGLs), and crude oil (CBX26).
Beyond its core infrastructure operations, Energy Transfer maintains strategic investments in Sunoco (SUN) and USA Compression Partners (USAC). These holdings broaden the company's exposure across the energy infrastructure value chain and add further diversification to its overall business portfolio.
Why Energy Transfer Is a Reliable Dividend Payer
Energy Transfer has a solid record of growing its dividend over the years. Beyond its history of dependable distributions, the company's relatively defensive business model provides a solid base for sustaining shareholder payouts, making it an attractive option for income-focused investors.
Driving Energy Transfer's payouts is the scale and strategic positioning of its asset network. Its infrastructure spans all major U.S. energy-producing basins and provides connectivity to key demand centers across the country, as well as international export markets. The company also benefits from predictable cash generation, with most earnings coming from fee-based activities. This structure reduces Energy Transfer's direct exposure to commodity price fluctuations and supports more consistent cash flows.
Energy Transfer's extensive natural gas pipeline network also allows the company to benefit from rising electricity consumption, particularly from the rapid expansion of data centers and artificial intelligence (AI) infrastructure. Energy Transfer has entered into agreements with Oracle (ORCL) to supply natural gas to three U.S. data centers. It has also agreed to provide natural gas to the Nexus Hubbard Campus, an AI-focused hyperscale facility currently under construction. In addition, Energy Transfer has partnered with Crusoe to develop infrastructure that will supply natural gas to Crusoe's AI factory campus in Abilene, Texas.
These developments are solid long-term growth opportunities and are likely to support Energy Transfer's distributions in the years ahead.
Energy Transfer to Keep Growing Its Dividend
Energy Transfer has consistently delivered solid growth, strengthening its payout capacity and positioning it well to keep growing its dividend.
The company delivered a strong second-quarter report on Aug. 4, with adjusted EBITDA reaching $5.1 billion, up 31% year-over-year (YOY from about $3.9 billion in Q2 2025. Adjusted DCF increased to $2.6 billion, up from $2 billion a year earlier.
The improvement was broad-based across the company's operations. Energy Transfer posted strong growth across midstream gathering, NGL transportation and exports, and crude oil transportation volumes. Strong underlying demand and higher activity across its network supported the company's overall performance.
Based on the continued momentum, Energy Transfer raised its 2026 adjusted EBITDA outlook to a range of $18.8 billion to $19.1 billion. The midpoint represents an increase of approximately $500 million from the previous guidance range.
Energy Transfer is also investing to capitalize on rising natural gas demand, infrastructure requirements associated with power generation, continued Permian Basin expansion, and more. Further, most of its major projects are supported by long-term contractual commitments and are "expected to generate mid-teen returns and considerable earnings growth over the next decade or more," per co-CEO Thomas Long.
Looking ahead, Energy Transfer continues to maintain a substantial pipeline of future development opportunities. The company is also targeting 3% to 5% annual distribution growth over the long term.
The Key Takeaway
Energy Transfer is an attractive high-yield dividend stock, supported by resilient fee-based cash flows, extensive infrastructure network, and continued strong operating performance. Its exposure to growing natural gas demand from power generation, data centers, and AI infrastructure provides solid long-term growth potential.
With a 6.3% yield, improving DCF, raised 2026 guidance, and a targeted 3% to 5% annual distribution growth rate, Energy Transfer offers consistent income and potential for capital appreciation.
On the date of publication, Amit Singh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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