Forget Energy Transfer Equity LP: Here Are 3 Better Dividend Stocks

Energy Transfer Equity (NYSE: ETE) is unique in the energy sector since it's not only one of the few remaining general partnerships, but it controls two master limited partnerships (MLPs): Energy Transfer Partners (NYSE: ETP) and Sunoco LP (NYSE: SUN). Those relationships are important to note because the company makes its money by collecting fees from those MLPs, which have grown burdensomely high in recent years. Because of that, many of its rivals have completed transactions to eliminate those payments, which in several cases have resulted in distribution cuts for investors.

Because it appears likely that Energy Transfer Equity will ultimately follow suit in eliminating those costly fees, income-focused investors are better off avoiding the company and its 6.6% yielding distribution for now. That's because several other pipeline companies offer payouts that are just as appealing and are on a more sustainable footing. Three of those better options are ONEOK (NYSE: OKE), MPLX (NYSE: MPLX), and Crestwood Equity Partners (NYSE: CEQP).

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Source: Fool.com