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Kinder Morgan (KMI) reported earnings 30 days ago. What's next for the stock?
Kinder Morgan (KMI -1.12%) and Williams (WMB 0.31%) are two of the largest natural gas pipeline companies in the country . Their extensive infrastructure generates very stable cash flow, enabling the companies to pay high-yielding dividends -- recently 4.3% for Kinder Morgan and 3.5% for Williams -- and invest in expanding their pipeline networks.
In the most recent trading session, Kinder Morgan (KMI) closed at $26.59, indicating a -1.12% shift from the previous trading day.
Zacks.com users have recently been watching Kinder Morgan (KMI) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Kinder Morgan boasts a robust $60 billion market cap and a vast infrastructure portfolio, driving strong midstream investment opportunities. The company plans $2.5 billion in 2025 projects, expecting 10% EPS growth and continued dividend increases for the 8th consecutive year. With a manageable $32 billion net debt, Kinder Morgan focuses on growth investments and shareholder returns, including a 4%+ dividend yield.
A high dividend yield can sometimes be a sign of a higher risk profile. Oftentimes, high-yield dividend stocks have weaker financial profiles, which puts their payouts at risk of a reduction if the company experiences a financial setback.
Long-term bond yields continue to rise. But investors looking for income can still find plenty of attractive opportunities with dividend-paying stocks that have healthy yields. “23 stocks pay huge dividends. They should be a better bet than treasuries.” - Barron's Weekly. In a Barron's interview, Steven Wieting, strategist at Citi Wealth, noted that a growing dividend is a tangible benefit for shareholders and a hallmark of companies with strong balance sheets. "Nobody can fake a dividend," he said.
Inflation erodes purchasing power, making it crucial to invest in equities, which historically outperform cash over the long term despite volatility. My thesis is that inflation will stay "higher for longer" due to factors like energy costs, labor market tightness, and deglobalization. To combat inflation, I recommend investing in sectors with strong pricing power like energy and real estate, which have historically outperformed during inflationary periods.
Escalating natural gas demand and stable take-or-pay contracts brighten KMI???s prospects.
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