Energy Transfer Yields 6.8%, Offers Stable Income and Data Center Boom Exposure

Energy Transfer (ET) is an income-generating play that offers a forward yield of 6.8%, making it a solid long-term investment for those looking for stable cash and income. The company's business model insulates it from volatile commodity prices, as it merely charges other companies 'tolls' to use its infrastructure. This master limited partnership (MLP) blends a return of capital with its own cash to pay tax-efficient distributions.

A $5,000 investment in Energy Transfer today will yield about $335 per year in annual income, and reinvesting those dividends can create even bigger compound returns. The company trades at just 12 times this year's earnings per unit (EPU) and is well-positioned to capitalize on the data center boom, which relies on natural gas for 40% of its electricity in the U.S.