Based on the aggregated intelligence of 120,000-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. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Energy Transfer facts

Headquarters (founded)

Dallas, Texas (2002)

Market Cap

$5.33 billion


Oil and gas storage and transportation

TTM Revenue

$7.03 billion


CEO Kelcy Warren
COO Marshall S. McCrea, III

TTM Return on Equity


Dividend Yield



Enterprise Products Partners (NYSE:EPD)
Enbridge Energy Partners (NYSE:EEP)

CAPS members bullish on ETP also bullish on

Freeport-McMoRan Copper & Gold (NYSE:FCX)
Chesapeake Energy (NYSE:CHK)

CAPS members bearish on ETP also bearish on

Cabot Oil & Gas (NYSE:COG)
Cephalon (NASDAQ:CEPH)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 105 of the 110 All-Star members who have rated Energy Transfer -- some 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include terryg8 and Cmoor, both of whom are ranked in the top 20% of our community.

In October, terryg8 weighed the stock's pros and cons for our community:

The dividend is there and they have 10 years worth of contracts to keep the cash flowing. Downside is the difficulties in funding additional projects or expansions. This is a solid buy with a great yield!

In a pitch from late last month, Cmoor shares that sentiment, highlighting Energy Transfer's dynamic dividend yield (which has come down slightly over the last few weeks): "ETP management has it well positioned to continue building out its pipelines and other transfer businesses, with adequate cash flow to maintain the dividend distributuion, as well. With the price beaten down, that dividend is now well over 10%."

What do you think about Energy Transfer, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.