KINDER MORGAN: STABLE GROWTH AND ATTRACTIVE DIVIDEND
- Kinder Morgan $KMIprovides ahigh source of income with a 6.4% yield, one of the highest payouts in the S&P 500.
- In the first quarter, the company generated DCF of $1.4 billion, a 5% increase from last year.
- Dividend stability was reflected in the seventh straight year of dividend increases.
- Approximately 68% of the company's revenue comes from stable take-or-pay and reinsurance contracts.
- Earnings growth in three of the four operating segments, with year-over-year earnings growth of 7% in pipelines and 17% in product pipelines.
- The $KMIgeneratedstrong cash flows that covered dividends and capital expenditures.
- The company is expected to achieve DCF of $5 billion, with a dividend payout ratio of 51%.
- It is focused on low-carbon energy capital projects, with a $3.3 billion backlog.
- The leverage ratio is expected to reach 3.9x at year-end, providing financial flexibility for acquisitions or share buybacks.
What do you investors think of the company and its dividend?
The company is great. After last week's results, it scored a nice valuation. The stock is now the highest it's been since January 2023. But the company is still in a sideways trend, so hopefully it will find the strength to break out. Do you have it in your portfolio?
The bank is great. It's been growing nicely in the last week after the results. It's still in a sideways trend, though. Do you have it in your portfolio?