CA - Kinder Morgan: Why I Might Buy This 7%-Yielding Midstream Stock Soon
2024-02-25 08:00:00 ET
Summary
- Kinder Morgan stock has underperformed the broader midstream sector over the past eight years.
- However, the company has already come a long way since cutting its dividend and appears poised to make a great leap forward.
- I share three reasons why Kinder Morgan is on my short list of potential new buys.
Kinder Morgan ( KMI ) is a midstream infrastructure giant, with a large and well-diversified portfolio that is primarily focused on natural gas. While its size and asset quality make it appear like a stellar business, its long-term performance has been anything but, as it has generated a paltry 3% total return since 2011, while the broader industry ( AMLP ) has returned 58.46% and fellow C-Corp midstream peers Enbridge ( ENB ) and Williams Companies ( WMB ) have significantly outpaced it over that timespan: