Why Energy Transfer Is Poised to Keep Rallying

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas transporter Energy Transfer Partners (NYSE: ETP  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Energy Transfer and see what CAPS investors are saying about the stock right now.

Energy Transfer facts

Headquarters (Founded)

Dallas (2002)

Market Cap

$14.1 billion

Industry

Oil and gas transportation and storage

Trailing-12-Month Revenue

$15.7 billion

Management

CEO Kelcy Warren (since 2007)
CFO Martin Salinas Jr. (since 2008)

Return on Equity (Average, Past 3 Years)

13.3%

Cash/Debt

$311.0 million / $16.2 billion

Dividend Yield

7.5%

Competitors

DCP Midstream Partners (NYSE: DPM  )
El Paso
Enbridge
(NYSE: ENB  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 920 members who have rated Energy Transfer believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, NarGuy, offered a cautiously bullish take on the Energy Transfer opportunity:

[T]he fundamentals and growth prospects of this company can't really be beat. Not to mention the dividend. My only concern is that its performance will be tied to commodities of course, which is not something I love. I prefer companies that are more diversified. But this looks like a winner in the MLP space.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Energy Transfer may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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