I Wouldn't Touch This 6.3%-Yielding Dividend Stock Right Now, Even Though Everyone Else Is Buying It.

Energy Transfer (NYSE: ET) is a high-yielding energy stock often favored by investors due to its 6.3% dividend yield, despite being covered by 19 out of 21 analysts as a buy or strong buy. However, I find myself hesitant to invest in ET, preferring to hold lower-yielding Enbridge (NYSE: ENB) instead. The reason behind this preference is Enbridge's more impressive dividend history, with 31 consecutive years of annual dividend increases, in contrast to Energy Transfer's distribution cut during the COVID pandemic.

While Energy Transfer has since restored its dividend and reduced leverage, the distribution cut and past questionable actions, such as canceling a Williams deal due to convertibles, have raised trust issues for me. Despite Energy Transfer's recent changes, I believe Enbridge's reliable dividend track record makes it a more trustworthy choice for income-focused investors.