This 6.7%-Yielding Dividend Stock Took Another Step Towards Delivering on a Big Promise
Energy Transfer (NYSE: ET) recently increased its distribution by 15%, pushing its yield to an attractive 6.7%. The master limited partnership (MLP) said that this was the first step toward its ultimate goal of returning its payout to its former level. The energy company took another step toward achieving that target this week after agreeing to sell its interest in its Canadian operations. The deal will help strengthen its balance sheet and finance its U.S. expansion, potentially freeing up cash flow for further dividend increases.
Here's a look at what this deal means for Energy Transfer's big-time distribution.
Energy Transfer has agreed to sell its 51% interest in Energy Transfer Canada to a joint venture between Pembina Pipeline (NYSE: PBA) and funds managed by alternative asset manager KKR (NYSE: KKR). The deal values the Canadian midstream company at 1.6 billion Canadian dollars ($1.3 billion), including debt and preferred equity. Energy Transfer expects to receive about CA$340 million ($270 million) in cash proceeds when the deal closes in the third quarter.
Source Fool.com
