Is Ultra-High-Yield Energy Transfer a Buy Now?

Energy Transfer, a company that has undergone significant changes over time, may present an attractive investment opportunity despite its prior history. The company's recent decision to buy pipeline peer Williams in 2006, which it later struggled to finalize, may have been the right call. This decision allowed Energy Transfer to avoid the need for increased debt or a dividend cut that would have likely been necessary for the acquisition to proceed.

However, the company issued convertible securities to protect its insiders from a dividend cut if the deal had gone through. This move suggests that the company is confident in its current position and is not planning to reduce its dividend. While some investors may prefer to own a lower-yielding peer like Enterprise Products Partners, Energy Transfer's recent acquisition makes it a compelling buy now.