Buy Energy Transfer Partners LP (ETP)

11/11/2008 3:45 pm EST

Focus: STOCKS

Jim Jubak

Founder and Editor, JubakPicks.com

Here’s a way to get paid now while waiting for the explosion in domestic natural gas supply from the shales of the Barnett, Fayetteville, and Haynesville formations to turn into profits when an economic recovery eventually leads to increased demand. In the now, investors are getting paid a dividend of 8.8% to wait. In the future, Energy Transfer Partners' (ETP) huge pipeline capacity in Texas and joint ventures that link its system with other new pipelines under construction from Oklahoma to Alabama should produce annual growth in cash flow of near 15%. As of June 30, I’m upping my target price to $47 a share by March 2010 from the previous target of $42 by December 2009. (Full disclosure I own shares of Energy Transfer Partners in my personal portfolio.)

Related Articles on STOCKS

Keyword Image
11 Reasons to Buy Microsoft
16 hours ago

For our latest recommendation, we revisit one of the world's most prominent technology companies, Mi...

Keyword Image
A Trio of Top-Tier Biotechs
16 hours ago

We hold three biotech stocks in our growth portfolio — Biogen (BIIB), Bioverativ (BIVV), and R...

Keyword Image
Saudis, Oil and ETFs
16 hours ago

Under the guise of clamping down on “widespread corruption,” Prince Mohammed bin Salman ...