Energy Transfer Stock Is Up Big in 2026. Is There Still Time to Get In?

By Justin Pope – Apr 3, 2026 at 5:32AM ESTKey PointsEnergy Transfer is known for its high yield, not explosive capital gains.Even after surging 16% in 2026, the distribution yield still beats most income alternatives.Strong financial backing should solidify your trust in the distribution's safety.Energy prices are soaring as the war in Iran continues. The Strait of Hormuz, for all intents and purposes, is closed, denying passage to approximately 20% of the global petroleum supply. Higher prices are driving energy stocks up to highs. Among them is Energy Transfer (ET 0.47%), up 16% in 2026. Dramatic price swings aren't the norm for the renowned midstream company, which has a beta of 0.63 and typically trades less volatilely than the broader market. Is there still time to buy Energy Transfer? Image source: The Motley Fool. Energy Transfer's 6.8% yield still bests most alternatives Energy Transfer is a master limited partnership (MLP) that often trades with an abnormally high yield due to its large distribution -- that's the MLP equivalent of a dividend. Unlike corporations, MLPs don't pay a corporate income tax. Instead, they pass their profits, losses, and depreciation deductions to minority partners to report on their tax returns using a K-1 tax form. Investors usually own MLPs for the income they generate, so yield is an important valuation metric for Energy Transfer relative to other income-generating investments. Units (shares) of Energy Transfer pay a 6.9% yield today. That's notably higher than many popular income-generating assets. Investors can currently get 4.4% from 10-year U.S. Treasuries. A high-yield online savings account will pay about 4% right now. The Schwab U.S. Dividend Equity ETF, a popular high-yield investment fund, yields 3.4% at its current price. If immediate and sizable investment income is important to you, it's still hard to beat Energy Transfer's distributions. ExpandNYSE: ETEnergy TransferToday's Change(-0.47%) $-0.09Current Price$18.93Key Data PointsMarket Cap$65BDay's Range$18.92 - $19.3252wk Range$14.60 - $19.86Volume14MAvg Vol16MGross Margin12.27%Dividend Yield7.00% But is the distribution safe? Here's what the numbers say Energy Transfer generates about 90% of its adjusted EBITDA -- that's earnings before interest, taxes, depreciation, and amortization -- from contract fees. Its business operates like a toll road, generating most of its revenue from the traffic, or materials in this case, that flow through its pipelines. Therefore, the company has very little direct short-term exposure to commodity prices. In 2025, the company generated approximately $8.2 billion in distributable cash flow, which is the total cash profits available to send to its partners. Energy Transfer's total 2025 distributions amounted to $4.55 billion, a payout ratio of only 55%. It's a pretty sizable financial cushion. Nobody knows what the future holds, but given the state of the Middle East, it's hard to see a prolonged energy price crash that would force Energy Transfer to cut its distribution. If anything, Energy Transfer seems poised for growth that could fund higher distributions. Management is targeting annual increases of 3% to 5%. So, yes, income-focused investors can still get in on Energy Transfer.Read NextApr 2, 2026 •By Matt DiLalloBest Oil ETFs for 2026 and How to InvestApr 1, 2026 •By Matt DiLalloOil Could Go to $200 or $50 a Barrel Depending on Developments with Iran. That's Why This is the First Energy Stock I Plan to Buy in April.Apr 1, 2026 •By Justin PopeTop 3 Energy Dividend Stocks for Reliable Income in 2026Mar 31, 2026 •By Jack Delaney3 Brilliant Energy Stocks to Buy Now and Hold for the Long TermMar 31, 2026 •By Matt DiLallo3 Pipeline Stocks Quietly Printing Cash While the Energy Sector SoarsMar 27, 2026 •By Thomas Niel1 Stock That Wins Whether Oil Goes to $120 or $60About the AuthorJustin Pope is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and industrials. Prior to The Motley Fool, Justin was a business manager for an industrial company.TMFbeardedFiStocks MentionedEnergy TransferNYSE: ET$18.93(-0.47%)-$0.09*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.