12 Best Dividend Stocks Under $25

4. Energy Transfer LP (NYSE:ET)

Number of Hedge Fund Holders: 32

Share Price as of June 21: $15.7

Energy Transfer LP (NYSE:ET) is a Texas-based company that is engaged in the transportation, storage, and distribution of natural gas, natural gas liquids, crude oil, and refined products. It is one of the best dividend stocks on our list as the company has raised its payouts for ten consecutive years. It currently offers a quarterly dividend of $0.3175 per share and has a dividend yield of 7.98%, as of June 21. The company’s future dividends are safe because of its strong cash position. In the most recent quarter, its Distributable Cash Flow (DCF) came in at $2.36 billion, growing from $2.01 billion in the prior year period.

Energy Transfer LP (NYSE:ET) has capitalized on acquisitions to gain significant momentum, setting the stage for an anticipated approximately 10% earnings growth this year. Recently, it announced plans to acquire WTG Midstream Holdings from affiliates of Diamondback Energy (FANG), Stonepeak, and the Davis Estate for around $3.25 billion. This acquisition is aimed at enhancing the company’s access to growing volumes of natural gas liquids and natural gas, particularly benefiting its operations in the Permian Basin and downstream sectors. In addition, the company successfully completed two major deals last year, further strengthening its strategic position in the market.

New growth projects and acquisitions have had a substantial impact on the volumes across Energy Transfer LP (NYSE:ET)’s assets. In the first quarter of 2024, the company posted a 44% increase in crude oil transportation volumes and a 10% rise in crude oil terminal volumes. Nearly all segments of the company reported growth during the quarter. Adjusted EBITDA reached nearly 4$ billion, marking a more than 13% increase compared to the same period last year. For FY24, the company expects to generate between $15 billion and $15.3 billion in adjusted EBITDA.

According to Insider Monkey’s database of Q1 2024, 32 hedge funds owned stakes in Energy Transfer LP (NYSE:ET), compared with 34 in the previous quarter. These stakes have a total value of nearly $930 million. With over 17.8 million shares, Abrams Capital Management was the company’s leading stakeholder in Q1.