Energy Transfer (NYSE: ET) has had its ups and downs over the years. Like many companies, it found itself in a tight spot when the pandemic hit in 2020. That event forced the master limited partnership (MLP) to slash its distribution in half so that it could retain additional cash to strengthen its balance sheet. While that payout cut was a bitter pill for investors to swallow at the time, it has paid big dividends over the past few years.

The MLP has significantly strengthened its financial foundation to the point where it's now stronger than ever. That enabled Energy Transfer to steadily increase its distribution, which is now above its pre-pandemic level. The payout, which currently yields nearly 8%, is safer than ever.

Energy Transfer's management team discussed its current financial position on the first-quarter conference call. Co-CEO and CFO Tom Long proclaimed, "Our financial position continues to be stronger than at any time in Energy Transfer's history." That drives the MLP's belief that it "will provide us with the continued flexibility to balance pursuing new growth opportunities, further leverage reduction, maintaining our targeted distribution growth rate, and increasing equity returns to our unitholders."

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Source Fool.com