8 Dividend Giants with Lowest Short Interest in 2024

1. Energy Transfer LP (NYSE:ET)

Short % of Float as of September 22: 0.81%

Energy Transfer LP (NYSE:ET) tops our list of the best dividend giants with the lowest short interest. The Texas-based energy company is engaged in the pipeline transportation and storage for natural gas, crude oil, and other refined products. New growth initiatives and acquisitions have been crucial in increasing volumes across the company assets. In July 2024, it completed its acquisition of WTG Midstream Holdings LLC, adding approximately 6,000 miles of gas-gathering pipelines to strengthen its presence in the Midland Basin. The acquisition also included eight gas processing plants with a total capacity of 1.3 Bcf/d, along with two more plants under construction. Since the deal closed, one of these 200 MMcf/d plants has already started operations. In addition, Energy Transfer LP and Sunoco LP formed a joint venture, combining their crude oil and producing water-gathering assets in the Permian Basin.

This year, Energy Transfer LP (NYSE:ET) expects to invest between $3 billion and $3.2 billion in growth capital expenditures (capex) for new projects. Looking ahead, allocating $2.5 billion to $3.5 billion annually in growth capex would enable the company to cover its distribution while still having funds from its cash flow to reduce debt or repurchase shares.

Energy Transfer LP (NYSE:ET) reported solid cash flow in the second quarter of 2024, a positive sign for income investors. The company’s distributable cash flow (DCF) reached $2.04 billion, up from $1.55 billion in the same period last year. On July 26, it raised its quarterly dividend by 0.8% to $0.32 per share, marking its 11th consecutive quarterly dividend increase.

At the end of June 2024, 32 hedge funds owned stakes in Energy Transfer LP (NYSE:ET), the same as in the previous quarter, according to Insider Monkey’s database. These stakes are collectively valued at over $911 million.

Overall, Energy Transfer LP (NYSE:ET) ranks first on our list. While we acknowledge the potential for ET to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.