Energy Transfer's Units Surged Nearly 12% in January

Energy Transfer offers an attractive yield.The S&P 500 got off to a decent start during the first month of the year, with the index gaining 1.4%. And the energy sector had a particularly strong performance, increasing 14.4% during the month -- and adding about 40 basis points to the S&P 500's appreciation. Of course, certain stocks in the sector performed better than others. Here's how midstream company Energy Transfer's (ET +0.42%) units performed in January and a look at the master limited partnership's underlying business to assess its prospects. Image source: Getty Images. The month's performance During January, Energy Transfer's units appreciated 11.9%. That may seem disappointing given the energy sector's 14.4% performance, but the company has some positive things going for it. As a midstream energy company, Energy Transfer's revenue isn't as reliant on natural gas and crude oil prices as upstream companies are. Those companies explore and produce the commodities, making them very sensitive to prices.

But Energy Transfer operates pipelines that transport gas and oil, along with storing those products. That means it relies on the flow of these commodities more than the underlying price. It also has contracts and receives fees to process and store oil and gas, providing another measure of stability. Factoring in distributions Energy Transfer's unit price appreciation isn't the only factor investors should consider. The company has raised its distributions every quarter for the last several years. That includes boosting December's payout from $0.3325 to $0.335 per unit. Over the past year, through Feb. 12, the units lost 4.7%. However, after factoring in dividends, they produced a total return of 0.3%. At the current distribution rate, Energy Transfer yields 7.3%. That dwarfs the S&P 500's 1.2% yield. Of course, Energy Transfer isn't completely immune to major events, like the COVID-19 pandemic. In 2020, it halved the quarterly distribution rate. But those were extraordinary times. ExpandNYSE: ETEnergy TransferToday's Change(0.42%) $0.08Current Price$18.98Key Data PointsMarket Cap$65BDay's Range$18.80 - $19.0752wk Range$14.60 - $19.51Volume11MAvg Vol15MGross Margin12.27%Dividend Yield6.98% Presently, the company has plenty of cash flow to pay its distributions. During the first nine months of 2025, it produced $8.2 billion in adjusted distributable cash flow compared to the $4.6 billion in distributions to unit holders. Adjusted distributable cash flow is a key measure of a master limited partnership's ability to pay distributions. Given its cash flow and yield, income-focused investors looking for a relatively stable company in the energy sector should find Energy Transfer attractive. Combined with potential price appreciation, owning the units could produce a nice total return.Read NextFeb 20, 2026 •By Geoffrey SeilerIs It Time to Buy Energy Transfer as Growth Projects Ramp Up?Feb 20, 2026 •By Matt DiLalloBetter Dividend Stock: Energy Transfer vs.

Enterprise Products Partners in 2026Feb 20, 2026 •By Keith SpeightsAttention, Income Investors: It's Time to Load Up on Energy Transfer StockFeb 19, 2026 •By Justin Pope2 Dividend Stocks to Double Up on Right NowFeb 19, 2026 •By Matt DiLalloEnergy Transfer Just Can't Stop Adding Fuel to its Growth EngineFeb 18, 2026 •By Matt DiLalloEnergy Transfer's Record Results Put Its 7.2%-Yielding Dividend on a Rock-Solid FoundationAbout the AuthorLawrence Rothman, CFA, has been a contributing Motley Fool stock market analyst since 2019, covering consumer goods and retail stocks. Previously, Lawrence worked on Wall Street and at independent research firms before devoting his attention to finding successful long-term investments for individual investors.TMFLarryrothmanStocks MentionedEnergy TransferNYSE: ET$18.98 (+0.42%) $+0.08*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.