Nine months after Jim Cramer pounded the table on Energy Transfer (NYSE: ET | ET Price Prediction) as his favorite dividend stock for retirees, the results are in. As we covered in our July 2025 piece, Cramer urged income seekers to step into the midstream giant when units were trading around $17. Today, the call looks vindicated, with one important caveat for new buyers.
Energy Transfer: The Nine-Month Scorecard
Energy Transfer closed at $19.87 on May 6, 2026, a 10.5% price-only return since the original article. Add the four quarterly distributions paid since then and the total return widens further. The one-year gain stands at 25.7%, year-to-date 2026 is at 20.5%, and shares hit a fresh 52-week high of $20.67 on May 5, 2026.
The income side held up cleanly. The partnership announced a $0.3375 per unit distribution on April 27, 2026, raised from $0.335 the prior quarter and payable May 20, 2026. That extends an unbroken quarterly distribution growth streak dating back to early 2023. The current yield runs approximately 6.8% to 7.1%.
Q1 2026: The Forward Anchor
Energy Transfer reported Q1 2026 results on May 5, 2026, and the results reframed the bull case. Adjusted EBITDA reached $4.9 billion, versus $4.1 billion a year earlier, with distributable cash flow of $2.7 billion. Management raised full-year 2026 Adjusted EBITDA guidance to $18.2 billion to $18.6 billion, up roughly $750 million at the midpoint.
The investment thesis is more concrete than it was nine months ago. CFO Dylan Bramhall noted Energy Transfer “beat internal plan by ~$500 million in Q1.” Marshall McCrea framed the geopolitical setup directly: “There is a very clear redirection to the U.S. for all products, LNG, NGLs, oil, etc.” Data center contracts now span Oracle, the Nexus Hubbard AI hyperscale campus in Central Texas, and an Arkansas site. The Hugh Brinson Pipeline (1.5 Bcf per day) is on track for Q4 2026 service. Full Q1 2026 results are filed with the SEC.
The Forward Case at $19.87
The forward P/E is 13, EV/EBITDA is 9, and a beta of 0.573 still suits an income-oriented portfolio. Analyst consensus is a Moderate Buy with an average price target of $22.69. Wells Fargo has a $25 price target on the stock, citing its unique positioning to capture “demand-pull” from the AI data center build-out.
Two watch items remain. The payout ratio is elevated at approximately 110.7%, which is sustainable as long as distributable cash flow (DCF) expands, but worth monitoring. And the Twin Oaks Pipeline negligence matter is before the Third Circuit on venue questions, representing a tail risk for now. Cramer’s call worked. Under his own buy-by-the-yield discipline, the current entry point is simply less compelling than it was at $17.
Top Gaining Stocks
Top Losing Stocks