If You'd Invested $1,000 in Energy Transfer (ET) Stock 10 Years Ago, Here's What You'd Have Today
2026-10-23 14:15
•Selena Maranjian •The Motley Fool
••• • Axe Cap view
Rethinking Energy Transfer’s Appeal from a SA Lens
Energy Transfer’s US pipeline story is strong, but South African investors should weigh currency and sector risks carefully.
Energy Transfer’s near 7% yield and disciplined dividend growth over almost 5 years is impressive. They’ve been steadily acquiring assets, like the recent Vaquero Midstream deal, signaling intent to grow in a traditionally stable but often overlooked midstream energy space. For JSE investors, the challenge here isn’t ET’s fundamentals but the rand’s behavior against the dollar. A weaker rand can boost returns when converted back, but currency volatility can quickly erode those gains. Compared with South African energy players like Sasol — who face local operational and regulatory risks but benefit from rand earnings — ET offers a different risk profile. If the rand strengthens sharply, it might undercut ET’s dollar-based returns for local investors. I’d keep an eye on the USD/ZAR rate as a key decision factor. Also, global energy transition debates could pressure midstream firms longer term, and any US regulatory shifts remain a wildcard. this is just our opinion and not financial advice
For rand-based portfolios, watch USD/ZAR closely before adding exposure to Energy Transfer. If the rand stabilizes or weakens moderately, consider a small position to capture the dividend yield, but don’t overweight.
- Energy Transfer (ET)
- USD/ZAR
- Rand strength reducing dollar returns
- US midstream regulatory changes
5/10
Energy Transfer, a major midstream energy company with 140,000 miles of pipeline infrastructure, offers an attractive 7% dividend yield and has increased payouts for nearly 20 consecutive quarters. The company is expanding through acquisitions like the $2.6 billion Vaquero Midstream deal, making it a potential long-term investment opportunity for income-focused investors.
Our take is based on reporting first published by The Motley Fool.