Energy Transfer is a large cap, midstream firm whose price has declined drastically due to fear surrounding COVID-19 and especially oil price war affects.
For now they have reaffirmed the dividend, a 27% yield on current price.
However, in the worst reasonable case scenario outlined below we see Energy Transfer cutting its dividend in half in order to provide funds for other capital needs.
This however would still represent a very well covered, self-funding, double digit yield, growing at greater than the rate of inflation.
Thus, while we don’t usually like to invest in front of a possible dividend cut, this may be an exception.
Read More: Fear Creates Opportunity: Energy Transfer Partners (NYSE:ET)