WMB - Nearing Retirement? The 3 Best Pipeline Passive Income Stocks to Buy Now
Pipeline companies can be excellent passive income producers. They tend to generate steady cash flow backed by long-term contracts and government-regulated rates. That gives them a lot of steady cash flow to pay out in dividends.
All this means that those nearing retirement should consider adding a high-quality pipeline stock to their portfolio. Three of the best for passive income are Kinder Morgan (NYSE: KMI) , ONEOK (NYSE: OKE) , and Williams Companies (NYSE: WMB) .
Kinder Morgan expects to produce nearly $5 billion in distributable cash flow this year. The company is on track to pay out less than 55% of those funds via its dividend this year. That will enable it to retain enough cash to fund its expansion program with around $900 million to spare, putting the dividend on a rock-solid foundation. The company can use that excess cash to further strengthen its balance sheet, make additional high-return investments, or opportunistically repurchase its stock.
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Nearing Retirement? The 3 Best Pipeline Passive Income Stocks to Buy Now