5 High Dividend Stocks with Attractive Payout Ratios

1. Energy Transfer LP (NYSE:ET)

Dividend Yield as of March 25: 6.61%

Dividend Payout Ratio: 33.29%

Number of Hedge Fund Holders: 36

Energy Transfer LP (NYSE:ET) is a Texas-based energy company that provides natural gas transportation and storage facilities. Hedge fund sentiment around the stock was positive. In Q4 2021, 36 hedge funds were bullish on Energy Transfer LP (NYSE:ET), up from 29 funds in the earlier quarter. 

On January 25, Energy Transfer LP (NYSE:ET) declared a $0.175 per share quarterly dividend, a 14.8% increase from its prior dividend of $0.1525. The dividend was distributed on February 18. 

Mizuho analyst Gabriel Moreen raised the price target on Energy Transfer LP (NYSE:ET) on February 18 to $14 from $13 and reiterated a Buy rating on the shares. According to the analyst, Energy Transfer LP (NYSE:ET)’s positive commercial updates were more important than issuing “strong” 2022 EBITDA guidance. 

Among the hedge funds tracked by Insider Monkey, David Tepper’s Appaloosa Management LP is the biggest shareholder of the company, with 12.3 million shares worth close to $102 million. 

Miller Value Partners, an investment firm, talked about Energy Transfer L.P. (NYSE:ET) in its Q2 2021 investor letter. Here is what the fund said:

“Energy Transfer LP (ET) rose over the period along with the price of oil climbing 40.59% over the period. The company received positive news that the Dakota Access Pipeline project would not be shut down while the Environmental Impact Statement by the US Army Corps of Engineers is drawn up. Energy Transfer reported strong 1Q results with revenue of $17B surpassing expectations for $11.8B with adjusted earnings before income, taxes, depreciation and amortization (EBITDA) hitting $5.04B ahead of consensus of $2.77B. The company raised full year adjusted EBITDA guidance to $12.9-13.3B from $10.6-11.0B previously, with the increase largely related to the benefits realized from Winter Storm Uri. The company paid down $3.7B in debt during the quarter, using strong cash flow to reduce leverage. The company also announced the issuance of $900M in 6.5% Series H perpetual preferreds with the company using the proceeds to repay debt and for general purposes.”

You can also take a look at 10 Best High Dividend Stocks to Buy Now and 10 Best Roth IRA Stocks To Buy in 2022. 

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