Categories: Dividends

ETP Handed $319 Million Verdict… Hands You 6.6 Percent Yield

ETP Handed $319 Million Verdict… Hands You 6.6 Percent Yield (Bloomberg)

Energy Transfer Partners (ETP) is a Dallas, Texas-based, gas and oil transporting company, currently paying a 6.6 percent dividend. But that dividend may go up, and soon. Like all master limited partnerships (MLPs), the company is legally obliged to pay back 90% of its revenue to shareholders — much like a real estate investment trust (REIT). It is coming off of a solid Q412 and was just awarded $319 million by a Texas jury that found it had been wrongfully dropped from a planned oil pipeline between Oklahoma and the Gulf of Mexico. This influx of cash will do nothing to hurt ETP’s current 6.6 percent quarterly dividend. And the cash could boost the dividend next quarter.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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