Why I Can't Stop Buying Energy Transfer These Days

By Matt DiLallo – Feb 14, 2026 at 7:07AM ESTKey PointsEnergy Transfer's high-yielding distribution is on a rock-solid foundation. The MLP plans to continue growing its payout by 3% to 5% per year. It has strong growth prospects. These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ETEnergy TransferMarket Cap$64BToday's Changeangle-down(2.68%) $0.49Current Price$18.75Price as of February 13, 2026 at 4:00 PM ETEnergy Transfer has high-octane total return potential.Energy Transfer (ET +2.68%) is already one of my largest sources of passive income. Despite that, I recently added to my position in the master limited partnership (MLP) again. Here's why I can't stop buying the pipeline stock. Image source: Getty Images. A high-quality, high-yielding income stream Energy Transfer currently has a distribution yield approaching 7.5%. That's several times higher than the S&P 500's dividend yield of around 1.1%. That high yield makes the MLP (which sends a Schedule K-1 Federal tax form each year) ideal for generating passive income. While high-yielding investments can have a higher risk profile, that's not the case with Energy Transfer. The MLP is currently in the strongest financial position in its history. It has distributed about 50% of its annual cash flows to investors over the past three years (about 90% of which come from stable fee-based sources), enabling it to retain billions of dollars to expand its operations and maintain a strong balance sheet. The company's leverage ratio is currently within its target range of 4.0-4.5 times, providing it with additional financial flexibility. ExpandNYSE: ETEnergy TransferToday's Change(2.68%) $0.49Current Price$18.75Key Data PointsMarket Cap$64BDay's Range$18.24 - $18.8152wk Range$14.60 - $20.51Volume27MAvg Vol15MGross Margin12.85%Dividend Yield7.07% The raises keep coming Energy Transfer recently raised its lucrative cash distribution again. It has increased its payout each quarter for the past several years and has delivered more than 3% distribution growth over the past year. That's within its long-term target of 3% to 5% annual distribution growth. The MLP should have plenty of fuel to continue increasing its high-yielding distribution. Its earnings should rise 7% to 10% this year due to the ramp-up and expected completion of several expansion projects. Meanwhile, the company is investing $5 billion to $5.5 billion into organic expansion projects this year. That's part of a multi-year capital spending program that includes projects scheduled to come online through the end of the decade (led by the $5.6 billion Transwestern Pipeline expansion project in the fourth quarter of 2029). Energy Transfer is pursuing multiple additional expansion projects, including numerous opportunities to grow its extensive gas infrastructure platform. Strong gas demand from power producers and AI data centers is creating incremental investment opportunities to expand its gas network. High income and growth potential Energy Transfer already provides me with lots of passive income. I continue adding to my position, which should provide even more income to my portfolio, especially as the MLP continues to increase its distribution. In addition to income, Energy Transfer has robust growth on the horizon. That drives my view that Energy Transfer can deliver powerful total returns over the next several years, which is why I can't stop adding to my position. Read NextFeb 14, 2026 •By Geoffrey SeilerThe Best Dividend Stocks to Buy and Hold ForeverFeb 13, 2026 •By Leo Sun2 No-Brainer Dividend Stocks to Buy Hand Over FistFeb 13, 2026 •By Geoffrey SeilerShould You Buy Energy Transfer Stock Before Feb. 17?Feb 10, 2026 •By Leo SunWhere Will Energy Transfer (ET) Stock Be in 3 Years?Feb 10, 2026 •By Reuben Gregg BrewerIs Energy Transfer Stock a Buy Now for Income-Focused Portfolios?Feb 8, 2026 •By Matt DiLalloCould Buying Energy Transfer Stock Today Set You Up for Life in Passive Income?About the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedEnergy TransferNYSE: ET$18.75 (+2.68%) $+0.49*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.