Energy Transfer (ET), a major midstream company with 140,000 miles of pipeline infrastructure, is positioned to benefit from rapidly expanding data center demand and rising natural gas needs. With existing deals including Oracle and Entergy Louisiana, and a forward P/E ratio of 11.3, the stock trading under $20 may not stay there long if the company demonstrates continued momentum in upcoming earnings.

While the energy sector has surged over 30% in 2026 driven by crude oil prices doubling due to the Iran conflict, Energy Transfer has only gained 16%. The MLP's fee-based business model insulates it from commodity price volatility but limits upside potential during price rallies. Energy Transfer is better suited for investors seeking stable income and growth rather than those betting on higher oil prices.

A former hedge fund analyst recommends three undervalued stocks with growth potential: Energy Transfer, a midstream company with a 7% yield trading at attractive valuations; JAKKS Pacific, a deep value toymaker benefiting from a new CFO's discipline and upcoming children's movie releases; and GitLab, a software development platform trading at a low EV-to-sales ratio with potential upside from its new Duo Agent solution.

Energy Transfer (ET), a master limited partnership, has surged 16% in 2026 amid rising energy prices due to Middle East tensions. The stock offers a 6.9% yield, significantly higher than Treasury bonds (4.4%) and savings accounts (4%), making it attractive for income-focused investors. With a 55% payout ratio and strong distributable cash flow of $8.2 billion in 2025, the company has a solid financial cushion to maintain and grow its distributions by 3-5% annually.

Energy Transfer and Oneok are recommended as compelling investment opportunities in April despite oil price volatility from the Iran conflict. Both companies generate stable, fee-based cash flows (90% and 85-90% respectively) that are relatively insulated from crude price fluctuations, supported by secured expansion projects and dividend growth plans of 3-5% annually.

Kayne Anderson Energy Infrastructure Fund (KYN) reported net assets of $2.8 billion and a net asset value per share of $16.28 as of March 31, 2026. The fund maintains strong asset coverage ratios of 712% for debt and 538% for total leverage. The portfolio is heavily concentrated in midstream energy companies, with top holdings including Enterprise Products Partners, Energy Transfer LP, and Williams Companies.

Energy Transfer is recommended as a top energy stock pick for April due to its ability to thrive in any oil price scenario. The midstream company benefits from higher volumes if the Iran conflict escalates and oil prices spike, while its fee-based business model (90% of earnings) provides downside protection if crude prices collapse. The company's natural gas pipeline projects and high dividend yield (6.3%) offer stable growth regardless of geopolitical outcomes.

The massive buildout of AI data centers is driving enormous electricity demand, benefiting energy companies. Energy Transfer, Constellation Energy, and Enbridge are well-positioned to capitalize on this trend through natural gas pipelines, nuclear power, and renewable energy solutions, with each offering different value propositions for long-term investors.

Three pipeline companies—Energy Transfer, Enbridge, and Kinder Morgan—generate stable, predictable cash flows from long-term contracts and regulated rate structures, making them reliable income-producing investments regardless of oil price fluctuations. Each company has multi-billion-dollar expansion projects underway through 2030 and maintains consistent dividend growth histories.

The article recommends three pipeline stocks for long-term investors seeking high yields: Enterprise Products Partners (EPD) with a 5.5% yield and 28 years of consecutive distribution increases, Energy Transfer (ET) with a 6.7% yield, and Enbridge (ENB) with a 5.2% yield and 31 years of consecutive dividend increases. These midstream companies operate a 'toll road' model that generates substantial cash flow insulated from commodity price volatility, with all three stocks trading at attractive valuations relative to their earnings.

The article highlights three high-yielding dividend stocks suitable for income-seeking investors: Ares Capital (10.7% yield) with 16+ years of stable dividends, Energy Transfer (6.9% yield) with quarterly increases since 2021, and Starwood Property Trust (11% yield) with over a decade of dividend stability. All three companies demonstrate strong fundamentals and are positioned to continue growing their payouts.

Energy Transfer LP is highlighted as a compelling dividend stock for 2026, offering a 7% dividend yield with an annual dividend of $1.34 per share. The stock has appreciated 16% year-to-date and is expected to grow distributions at 3-5% annually. With over $5 billion in planned natural gas infrastructure investments and favorable geopolitical conditions supporting natural gas expansion, analysts rate it a 'buy' at a forward P/E of 11.5.