Stability and Investor Confidence: Energy Transfer Lowers Payouts with Growing Earnings
Portfolio Pulse from Benzinga Insights
Energy Transfer (NYSE:ET) is distributing a dividend payout of $0.31 per share, leading to an annualized dividend yield of 9.34%. The company's dividend per share has decreased from $1.22 in 2019 to $0.87 in 2022, while its earnings per share have increased from $1.26 to $1.34 over the same period. This suggests that Energy Transfer is focusing on business growth by reinvesting profits rather than on dividend distributions.
August 21, 2023 | 3:05 pm
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NEUTRAL IMPACT
Energy Transfer's dividend payout is $0.31/share with a yield of 9.34%. Despite a decrease in dividend/share from 2019-2022, earnings/share have increased, indicating a focus on business growth.
The decrease in dividend per share suggests that Energy Transfer is focusing on reinvesting its profits for business growth, which could potentially lead to higher future dividends. However, this strategy might not appeal to income-seeking investors who prefer steady and increasing dividends.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
TORM (NASDAQ:TRMD) boasts the highest annualized dividend yield at 21.68% among its industry peers.
TORM's high annualized dividend yield could make it attractive to income-seeking investors. However, the company's financial health and dividend sustainability should be assessed before making investment decisions.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50