If You'd Invested $1,000 in Energy Transfer (ET) Stock 10 Years Ago, Here's What You'd Have Today
Key Points
Energy Transfer is a major "midstream" energy company.
It's poised to reward long-term investors -- especially via its fat dividend yield.
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Energy Transfer LP (TXSE: ET) is a "midstream" energy company. "Upstream" companies focus on exploring and producing oil and/or gas, while "downstream" companies focus on refining and selling it. Midstream businesses connect those companies -- via moving, storing, and processing oil and/or gas.
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Here's its performance in recent years:
|
Period |
Average Annual Total Gain |
|---|---|
|
Past 3 years |
18.79% |
|
Past 5 years |
20.05% |
|
Past 10 years |
6.46% |
|
Past 15 years |
9.39% |
Source: Morningstar.com, as of Oct. 20, 2026. Total gain includes dividend reinvestment.
And here's how those numbers would have increased a $1,000 investment:
- $1,000 would have grown to $1,676 over the past three years.
- $1,000 would have grown to $2,494 over the past five years.
- $1,000 would have grown to $1,870 over the past 10 years.
- $1,000 would have grown to $3,843 over the past 15 years.
Looking forward, not back
Investors should spend more time looking forward than back, though. So ... is Energy Transfer a company worth investing in now? Let's take a look.
It boasts about 140,000 miles of pipeline and related infrastructure, spanning 44 states and present in all of America's major production basins.
It's growing and plans to keep growing -- in part via acquisitions. For example, it recently struck a deal to buy Vaquero Midstream for about $2.6 billion. Vaquero brings a 300-mile pipeline, several gas-processing trains, and, importantly, long-term, fee-based contracts -- which can provide reliable cash flow for about the next decade.
An especially attractive thing about Energy Transfer is its dividend yield -- recently a whopping 7%! It cut its payout back in 2020 to restructure itself a bit, but it's been increasing it again -- for nearly 20 quarters in a row.
Note, too, that Energy Transfer is a master limited partnership (MLP), so it gets treated a little differently come tax time. If you own it, you'll need to file a K-1 tax form.
Give Energy Transfer some consideration for your long-term portfolio -- after learning more about it, of course.
Should you buy stock in Energy Transfer right now?
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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