2024-04-09 09:00:00 ET
Summary
- Kinder Morgan's shares have been trading sideways between $15 and $20 since the beginning of 2021.
- Long-term investors may be disappointed with KMI's flat returns and reduced dividend payments.
- Despite the stagnant share price, I am bullish on KMI stock due to its financial discipline, sustained profitability, and potential for capital appreciation.
Since the beginning of 2021, Kinder Morgan's ( KMI ) shares have been stuck trading sideways between $15 and $20. Shares have still not gotten back to their pre-pandemic levels, and we're approaching a decade of relatively flat returns. Long-term investors who have held shares for more than a decade are probably displeased with KMI as it went from a company with strong appreciation and dividend payments to a company whose dividend is paying 59.07% of what the dividend paid prior to the cut in 2016. It's not about where a company came from, it's about where the company is today and its future outlook. KMI continues to deliver on its strategic objective of financial discipline while showcasing the ability to generate sustained profitability and rebuild its capital allocation program. While the long-term and short-term charts don't look enticing, I am bullish on KMI as the energy transition looks more like a hybrid approach as I have speculated, rather than eradicating fossil fuels. If you're looking for income with the potential for capital appreciation, I think KMI is a strong candidate, as we could see shares break out above $20 in 2024....
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Kinder Morgan Could Retest $20 Sooner Than Later While Generating A 6.12% Yield