From Nasdaq: 2024-08-04 09:30:00

Kinder Morgan (NYSE: KMI) is having a breakout year, with a 21% increase year to date and hitting a new five-year high. Despite sector underperformance, the company continues to perform well and has a bright future ahead, making it a solid dividend stock worth considering.

The company has posted strong financial results, made strategic acquisitions in oil and gas infrastructure, LNG, and RNG, and maintained solid financial discipline. Kinder Morgan plans to finish the year with a net debt-to-adjusted EBITDA ratio of 3.9, showing improved financial stability and ability to support dividends and growth investments.

Kinder Morgan has guidance for a 15% increase in earnings per share to $1.22 and $1.15 in dividends per share. Despite a high dividend payout compared to earnings estimates, the company generates sufficient distributable cash flow to cover dividends while maintaining a healthy balance sheet and investing in future growth.

The company benefits from the growth catalysts of demand for natural gas and oil, LNG exports, and increased energy usage from technology companies driving data center demand. Kinder Morgan’s strategic position in supplying energy infrastructure puts it in a favorable position for future growth, despite uncertainties surrounding the energy industry’s evolution.

Kinder Morgan remains a reliable income source with a solid investment thesis centered around energy consumption, LNG, RNG, and electricity demand from emerging tech sectors. While the stock is not cheap, it offers steady growth and high yield, making it attractive for investors who believe in the importance of natural gas and oil in the future energy mix.



Read more at Nasdaq: Meet the 5.4%-Yielding Dividend Stock That Is Crushing the S&P 500 and Nasdaq Composite in 2024