10 Extreme Dividend Stocks With Upside Potential

4. Energy Transfer LP (NYSE:ET)

Upside Potential as of August 14: 24.4%

Dividend Yield as of August 14: 8.11%

Energy Transfer LP (NYSE:ET) ranks fourth on our list of the best dividend stocks with upside potential. The Texas-based pipeline transportation company is up by nearly 15% since the start of 2024, mainly because of strong quarterly earnings in the first two quarters of the year. The company experienced robust volume growth in the second quarter of 2024 across its various segments, with crude oil transportation volumes leading the way with a 23% increase. Both crude oil terminal and NGL fractionation volumes grew by 11%, while refined product volumes increased by 9%. The company’s revenue in the quarter came in at $6.17 billion, which showed a 7.47% growth from the same period last year.

New growth projects and acquisitions have played a key role in boosting volumes across Energy Transfer LP (NYSE:ET)’s assets. In July 2024, the company finalized its acquisition of WTG Midstream Holdings LLC, adding around 6,000 miles of gas-gathering pipelines that enhance its network in the Midland Basin. This deal also included eight gas processing plants with a combined capacity of approximately 1.3 Bcf/d, along with two more processing plants under construction. Since the acquisition, one of these 200 MMcf/d plants has already become operational. In addition, Energy Transfer LP (NYSE:ET) and Sunoco LP announced a joint venture, merging their crude oil and produced water gathering assets in the Permian Basin.

Energy Transfer LP (NYSE:ET) also reported a strong cash position, which is good news for income investors. The company’s distributable cash flow (DCF) was $2.04 billion, up from $1.55 billion in the prior-year period. On July 26, the company hiked its quarterly dividend by 0.8% to $0.32 per share. This was the company’s 11th consecutive quarterly dividend increase, which makes ET one of the best dividend stocks on our list. The stock’s dividend yield on August 14 came in at 8.11%.