Verizon pays an annual dividend of $2.46 per share, which yields 4.5%. On top of that, the partners might need to inject equity into their venture because of a backstop agreement with lenders following a $2.5 billion bond offering last year.

Copyright © That led Energy Transfer to revise its guidance, with it now only expecting to generate between $10.6 billion and $10.8 billion of EBITDA. Pipeline giant Energy Transfer (NYSE:ET) got another dose of bad news this week.

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Retirement news, reports, video and more. Shares in Energy Transfer failed to post a strong recovery after it said oil will continue to flow through the pipeline, a sign investors believe the company will eventually cave in. The news sent shares of Energy Transfer and the pipeline's other investors into a tailspin. In that case, the stock may rebound with an expected oil price recovery. Top Chemicals Firm With 15+ Years of Dividend Growth Reaffirms Its Position on Best Dividend Stocks List, Critical Facts You Need to Know About Preferred Stocks, Earn More With Dividend Stocks Than With Annuities for Your Retirement, Trending: Dakota Access Pipeline Shutdown Order Weighs on Energy Transfer and Oneok. Make short-term dividend income. It also said it expects headwinds to continue in the second quarter. Article printed from InvestorPlace Media, Energy Transfer’s dividend also remained untouched in May at a quarterly $0.305 per share. That income stream will dry up -- at least temporarily -- as the DAPL undergoes its environmental review. That’s a very rare combination in today’s financial markets. During the first few trading sessions of September, the shares could be purchased for less than half of that price. Build conviction from in-depth coverage of the best dividend stocks. Energy Transfer is the largest owner of North Dakota with a 36.4% interest, followed by Phillips 66 Partners (PSX) with 25% and a joint venture owned by Marathon Petroleum (MPC) and Enbridge (ENB). As such, the company can now market the products as containing a reduced level of damaging substances that will lead to an improvement in the population’s health. In actuality, recent developments tend to indicate that Energy Transfer is faring well even amid a challenging energy market. Oneok was hit by two shocks in a span of just four months. The company will lose the income the pipeline generated and might also need to make a sizable equity contribution. @themotleyfool #stocks $ET $PSX $PSXP, A Sputtering Growth Engine Could Ignite an M&A Boom in This Sector, Energy Transfer Expects to Start Up an Expanded Dakota Access Pipeline by Late Next Year, Oil Stocks Crashing as Fuel Consumption Flatlines, Energy Transfer Gets Government Backing in Contract Dispute With Chesapeake Energy, Copyright, Trademark and Patent Information. However, further legal setbacks could cause earnings to come in even lower. Oneok does not directly own Dakota Access but its closure means producers in the region will not be able to ship enough oil to Oneok via Dakota Access and might be forced to cut production.

2020 InvestorPlace Media, LLC. Certain financial information included in is proprietary to Mergent, Inc. ("Mergent") Copyright © 2014. With that, the company ought to be able to maintain its terrific dividend payouts. At the same time, some investors are concerned that the handful of companies offering high dividend yields will be forced to slash those yields sooner or later. On a positive note, Energy Transfer believes it will start producing positive cash flow in 2021 after paying its dividend and funding capital expenses.

You take care of your investments. Oneok (OKE) has seen its traffic surge 85% these past two weeks, as the company has suffered from lower oil prices and a recent court order to shut down Dakota Access Pipeline. The data suggests that the company is more than capable of maintaining its robust distributions. In addition to that cash flow hit, Energy Transfer and its partners will need to spend more money on their legal defense and any related costs. A cash dividend payment of $0.305 per share is scheduled to be paid on August 19, 2020.

Stay up to date with timely dividend news. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Monthly payments from Quarterly Payers ››. The system started commercial service in June of 2017, following a. due to the controversies surrounding DAPL's route. Not surprisingly then, the company’s debt rose by $4.8 billion to $51.3 billion in the last year. So, let’s get right to the meat of the matter. quotes delayed at least 15 minutes, all others at least 20 minutes. However, it might have to rethink that plan if it needs to infuse equity into DAPL, since it can't risk losing its investment-grade credit rating. If there are no yield cuts, the ET stock price could decline by 19% over the next year and shareholders should, in theory, at least break even. Biotech can be a great place for income seekers to dwell. The system has the capacity to transport 570,000 barrels of oil per day (BPD), though Energy Transfer has been seeking support to expand it up to 1.1 million BPD. The point is that investors don’t believe that the price of oil will be high enough to produce enough cash flow to cover the dividend over the next year. Philip Morris International received a piece of good news after its tobacco heating system was authorized as a minimized risk product.

Join over 100,000 investors who get the latest news from Thus, a doubling of the price is not inconceivable. It has an astounding dividend yield of 20.6% annually. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Investors are selling it because they want to get out before the dividend rate is cut. Because of those issues, the company initially expected that it would generate between $11 billion and $11.4 billion of EBITDA this year, even with 2019's total at the midpoint. Besides, the ET stock price has been much higher than it is today. However, I do not believe that is investing using the margin of safety concept. On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Helpful articles on different dividend investing options and how to best save, invest, and spend your hard-earned money. So, what is the problem? The pressure on Energy Transfer's cash flow is a concern because the company expects to invest $3.6 billion on additional expansion projects this year. Will ET stock continue to be a dividend overachiever? Municipal bonds news, reports, video and more.

Chesapeake wants the court to. An Exciting Time for Biotech Stocks & Their Dividends. Refining giant Phillips 66 (NYSE:PSX), which owns a 25% stake through its MLP Phillips 66 Partners (NYSE:PSXP), disclosed that it might need to contribute as much as $631 million in equity as a result of the pipeline's shutdown. Oneok and Energy Transfer have seen their share prices decline after a judge ordered the shutdown of the controversial Dakota Access Pipeline, which has stirred protests over environmental concerns.

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