Energy Transfer (NYSE: ET) doesn't get much respect from the market these days. That's apparent from its current distribution yield, which is approaching double digits. It's a sign that the market doesn't believe the master limited partnership (MLP) can sustain its payout. That unbelief is weighing on the company's valuation, pushing up its yield. 

There's reason for investors to be skeptical of Energy Transfer. The company previously cut its payout in half during the pandemic to preserve cash. However, the MLP has come a long way since that time. It has not only returned its payout to its pre-pandemic level but has also started pushing it past that peak. Because of that, investing $1,000 in the MLP would be a wise move for income-seeking investors to make this June.

Energy Transfer made the tough decision to slash its distribution by 50% in late 2020 to retain more cash to fund expansion projects and repay debt. However, the company pledged to investors to return its payout to its pre-pandemic peak as its leverage ratio fell toward its target range of 4.0 to 4.5 times debt-to- earnings before interest, taxes, depreciation, and amortization (EBITDA). 

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Source Fool.com