What does David Tepper do when he's not busy with his Carolina Panthers football team? We can put making lots of money near the top of the list.

Tepper ranks as one of the greatest hedge fund managers of the century. Thanks to the sizzling growth of Appaloosa Management, the fund he started in 1993, his net worth now stands at close to $20.6 billion.

This hefty total is the direct result of Tepper's shrewd stock picks through the years. He's still at it, with Appaloosa's portfolio chock-full of winners. Tepper has invested nearly $141 million in this ultra-high-yield dividend stock -- and it's a screaming buy right now.

A midstream monster

The billionaire hedge fund CEO especially likes tech stocks. Appaloosa's holdings include five of the "Magnificent Seven" stocks. But Tepper doesn't limit himself to just one sector. His second-largest position that doesn't have a technology connection is midstream energy leader Energy Transfer (NYSE: ET).

Energy Transfer operates more than 125,000 miles of pipeline. Its assets also include natural gas liquid (NGL) fractionaters, storage facilities, and terminals as well as other energy infrastructure facilities. The company has operations in all of the major U.S. oil and gas production basins.

Acquisitions have been a key source of Energy Transfer's growth in recent years. For example, in November 2023 the company finalized its purchase of Crestwood Equity Partners LP for $7.1 billion.

Tepper owns close to 9.8 million shares of Energy Transfer. He first initiated a position in 2017. While he has bought and sold shares several times since then, Energy Transfer still makes up nearly 2.4% of his total portfolio.

Why Energy Transfer is a screaming buy

I think that Energy Transfer is a screaming buy right now, but not just because Tepper owns it. There are several reasons why I like the stock.

Let's start with the company's distributions. Energy Transfer's distribution yield currently stands at 8.75%. Last month, the company increased the payout by 3.3%. It's targeting annual distribution growth of between 3% and 5%.

Valuation is also an important factor. Energy Transfer's forward earnings multiple is only 8.3x. Just how cheap is that? The overall S&P 500 energy sector trades at more than 11.8 times forward earnings.

I like it when the management teams of companies have plenty of skin in the game. It helps ensure that they're well aligned with the interests of shareholders (or, in this case, unitholders). Energy Transfer's management and independent board of directors members own roughly 11% of the company. That's more than five times the insider ownership level of the midstream energy leader's peers.