Is Energy Transfer the Smartest Investment You Can Make Today?

Energy Transfer (NYSE: ET) has a huge 7.5% yield. To put that into perspective, the S&P 500 index (SNPINDEX: ^GSPC) is yielding a scant 1.2% and the average energy company just 3.2%. It might seem like a smart move to lock in a lofty income stream by adding Energy Transfer to your portfolio. You'd probably be better off with one of these two competitors.Energy Transfer's 7.5% distribution yield is very attractive. That yield is backed by a master limited partnership (MLP) that operates an extensive collection of vital energy infrastructure assets. The business basically uses a toll-taker model, in which customers pay it for the use of its assets, such as pipelines. The midstream, which is the industry segment in which Energy Transfer operates, is the most reliable segment of the broader, and generally commodity-driven, energy sector.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool