Exploring Energy Transfer for Passive Income
We all want extra income, especially in retirement. A notable stock to consider for passive income is Energy Transfer (NYSE: ET), currently offering a substantial dividend yield of 6.2%.
How to Calculate Your Investment Needs
If you’re aiming for $1,000 in annual income, you’d need approximately 735 shares of Energy Transfer, given its annual dividend of $1.36 per share. This would require an investment of about $15,817 based on the current share price of $21.52—a considerable sum for generating passive income.
Important Investment Considerations
However, it’s crucial to diversify your portfolio. If your total portfolio is around $200,000, dedicating $160,000 to one stock could be risky. The Motley Fool recommends holding shares in about 50 different companies and maintaining a long-term investment horizon of at least five years.
Should You Consider Investing in Energy Transfer?
Energy Transfer presents an intriguing opportunity. As noted by analysts, it’s well-positioned in the market for providing natural gas to AI data centers, a promising direction despite growth risks tied to acquisitions. Additionally, it operates as a master limited partnership, which involves more tax paperwork.
Current Investment Strategy
Before jumping in, it’s worth noting that while Energy Transfer has merits, it wasn’t listed among the 10 best stocks identified by the Motley Fool’s Stock Advisor team. These stocks could deliver significant returns, similar to past recommendations like Netflix and Nvidia.
If you’re interested in passive income and can manage the risks, Energy Transfer could be worth a closer look. Please ensure you conduct further research to assess its suitability for your portfolio.
