Why I Couldn't Resist Adding to This Ultra-High-Yield Dividend Stock
I have a simple investment strategy. I primarily make investments that generate income, which I use to buy more income-producing investments. My plan is to steadily grow my passive income streams so that they can eventually cover my expenses.
My main focus is investing in companies that pay attractive income streams that will likely steadily rise. One company that has delivered a massive dose of both over the past year is Energy Transfer (NYSE: ET). The master limited partnership (MLP) offers a 9.7%-yielding distribution following a 75% increase over the past year. While I don't think the energy company can grow its payout that fast in the future, I do expect it to keep rising. That's why I couldn't resist adding to my position earlier this month.
Energy Transfer has had its ups and downs over the years. The MLP had to slash its distribution by 50% in 2020 due to the pandemic's impact on its operations and financial situation. That enabled it to retain more cash for debt reduction. Along with earnings growth, the debt reduction has helped drive Energy Transfer's leverage ratio down to within its targeted range of 4 to 4.5 times debt-to-EBITDA.
Source Fool.com
MLP SE Stock
Currently there is a rather positive sentiment for MLP SE with 4 Buy predictions and 0 Sell predictions.
With a target price of 10 € there is a hugely positive potential of 76.06% for MLP SE compared to the current price of 5.68 €.
