Opinions The Panic-Proof Portfolio (Stockchase Research)
Energy Transfer LPETTOP PICKApr 13, 2023
Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Has long owned it. Expect a 6-8% dividend. Remains a core name in the midstream area. Was upgraded today.
Bryn TalkingtonThe $331M fund trades at a tiny premium to NAV. Fees are 0.35%. Five year annualized is 20.82%, One year is 3.31%. Indicated yield 4.77%. It owns 30 securities in the infrastructure sector, and we like its holdings. Energy Transer is the biggest position at 8.57%. Midstream processing companies is its main focus. We would be quite comfortable owning this for an investor looking for sector exposure.
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We'll continue to see $50 oil with no increase in drilling and higher wages. ET and VNOM pay nice dividends and trade cheaply; she's fine to hold them for now.
Bryn Talkington
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Premium contentThe oil and natural gas products that move through pipelines are an integral part of our modern way of life. From the clothes you wear and the food you eat to the transportation you use, oil and natural gas touch your life in thousands of ways you have never imagined. Social media mentions are up 400% in the past 24h.
Pick your spots in energy. This is a pipeline. This is up 45% this year and pays a 7% dividend yield. Stay capital-lite.
Bryn Talkington
Premium contentOur PAST TOP PICK with ET has triggered its stop at $15. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 22% when combined with the previous buy recommendations.
Premium content
We reiterate ET as a TOP PICK. The company has been aggressively retiring debt bringing it back into their target range of under 4.5x debt-to-EBITDA. It pays a great dividend, backed by a payout ratio under 65% of cash flow. It trades 9x earnings and 1.2x book value. We recommend maintaining the stop at $11.50, looking to achieve $16 -- upside potential of 23%. Yield 7.9%
(Analysts’ price target is $16.75)