This High-Risk, High-Yield Stock Could Fuel Big-Time Gains for Investors in 2018
Energy Transfer Partners (NYSE: ETP) has lost more than 35% of its value this year. That's despite the fact that the company finally turned around its sinking earnings and cash flow thanks to the recent completion of several expansion projects. That growth enabled it to continue increasing its already lucrative distribution, which now yields a stunning 14.5%. That's roughly double the yield of the average master limited partnership, mainly because Energy Transfer sells for an absurdly low valuation versus its peers.
That said, Energy Transfer is on sale for a reason, which is that investors remain deeply concerned about the company's financial situation. They see that precarious picture potentially causing a massive distribution cut at some point in the future. However, if Energy Transfer can alleviate those fears by delivering on its growth promises, it could fuel significant gains for risk-tolerant investors in 2018.
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Source: Fool.com
