Energy Transfer Is Taking Its Ultra-High-Yielding Dividend to New Heights

Energy Transfer (NYSE: ET) accomplished an important goal earlier this year: The master limited partnership (MLP) delivered on its promise to return its distribution to its pre-pandemic peak. Like many companies, Energy Transfer had to reduce cash outflows during the pandemic due to the impact on its operations. The midstream company planned to return its distribution payment to its pre-pandemic level once it achieved its leverage ratio target of 4x to 4.5x its debt-to-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).