KINDER MORGAN: STABLE GROWTH AND ATTRACTIVE DIVIDEND
- Kinder Morgan $KMIhigh 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 $KMIstrong 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?