Core Viewpoint - High-yield stocks can provide significant passive income and total return potential, but some stocks are overrated due to poor capital allocation and growth prospects, while others are underrated despite strong fundamentals [1]. Overrated High-Yield Stocks AT&T (T) - AT&T offers a 6.5% NTM dividend yield with a 51% expected payout ratio for 2024, appealing to income-focused investors [2]. - The company has misallocated capital on acquisitions, leading to poor total return performance and a high debt burden, resulting in a dividend cut [2]. - Current focus on debt repayment and core business investment limits cash available for meaningful dividend growth, which is expected to lag behind inflation [2][3]. 3M (MMM) - 3M has a 6.6% NTM dividend yield and a 77% expected payout ratio for 2024, but its earnings per share have stagnated since 2016, with a meager 0.9% CAGR over the past decade [4]. - Dividend growth has slowed significantly, with a 0.3% increase in 2023 and similar expectations for 2024, leading to a -4% total return over the past decade [4]. - Analysts forecast a -1.4% earnings per share CAGR through 2028, indicating limited future growth potential [4]. Underrated High-Yield Stocks W. P. Carey (WPC) - WPC has transitioned away from office properties, focusing on high-quality industrial and retail assets, positioning it for long-term growth [5]. - The company has a BBB+ credit rating and significant liquidity from office sales, allowing it to navigate high capital costs and fund acquisitions [5]. - With a 6.2% NTM dividend yield and a strong cash flow, WPC is expected to see accelerated dividend growth and potential double-digit annualized total returns [5]. Kinder Morgan (KMI) - KMI has improved its leverage ratio from 5.3x in 2016 to 4.2x in 2023, with expectations to further reduce it to 3.9x [6]. - The company has stabilized its cash flow profile through long-dated contracts and regulated assets, enhancing its growth profile [6]. - With a 6.2% dividend yield and an attractive EV/EBITDA ratio of 9.2x, KMI presents a compelling total return opportunity [6]. Investor Takeaway - High-yield investing requires careful selection beyond just attractive yields, favoring stocks with strong fundamentals and growth prospects over those burdened by challenges [7].

Core Viewpoint - Kinder Morgan (KMI) is positioned as a top income pick for 2024 due to its essential economic role and attractive valuation, despite recent stock price fluctuations [2][8]. Company Overview - Kinder Morgan is a leading U.S. energy midstream company with the largest natural gas transmission network, comprising 70,000 miles of pipelines that transport approximately 40% of U.S. natural gas production [3]. - The company has a working storage capacity of 702 billion cubic feet (bcf), representing about 15% of the total U.S. capacity, with 64% of cash flows derived from natural gas [3]. Financial Performance - KMI's adjusted EPS has nearly doubled from $0.66 in 2016 to an estimated $1.22 for 2024, while the net debt to EBITDA ratio is expected to decrease to 3.9x, one of the lowest levels since 2016 [3][4]. - The company has returned $20 billion to shareholders through dividends and share repurchases, with an estimated $2.6 billion for 2024 [3]. Recent Results - KMI reported a 4% year-over-year decline in distributable cash flow for Q4 2024, attributed to higher interest expenses from a recent acquisition, rather than a fundamental business weakness [4]. - Natural gas transport volumes increased by 5% year-over-year in Q4, driven by higher demand for power generation and industrial customers [4]. Growth Prospects - KMI anticipates a 20% growth in the natural gas market by 2030, with expansion projects planned to support increased LNG exports and industrial demand [4]. - The company projects 15% growth in EPS and 8% growth in distributable cash flow per share for 2024, with potential catalysts including rising crude oil prices [4][6]. Dividend and Valuation - KMI offers an attractive dividend yield of 6.1%, with a 54% DCF-to-Dividend payout ratio and a history of six consecutive years of dividend growth [6]. - The current price-to-cash flow ratio of 6.3x is considered appealing, sitting at the low end of KMI's three-year range [6][7]. Market Position - KMI's EV/EBITDA ratio of 11.6x is competitive compared to peers, indicating a reasonable valuation relative to the industry [7]. - With expectations of 5-7% annual DCF per share growth, KMI is positioned for potential market-beating returns [7][8].

Kinder Morgan (KMI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this oil and natural gas pipeline and storage company have returned +4.1%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Oil and Gas - Production and Pipelines industry, which Kinder Morgan falls in, has gained 5.3%. The key question now is: ...

Core Viewpoint - Williams is positioned to potentially grow its dividend faster than Kinder Morgan in the future, despite Kinder Morgan's higher current dividend yield [1] Kinder Morgan Overview - Kinder Morgan has generated $7.5 billion of adjusted EBITDA, remaining flat compared to 2022 and 2018 [2] - The company has faced challenges, including asset sales to reduce debt, which have decreased its leverage ratio by 26% since 2016 to 3.9 times [2] - Expected growth drivers for Kinder Morgan include completed expansion projects and a $1.8 billion acquisition of STX Midstream, projected to boost adjusted EBITDA by about 8% in 2024 [2][3] - Future dividend increases are expected to be modest, with a projected 2% increase this year [3] Williams Overview - Williams has achieved an 8% compound annual growth rate in adjusted EBITDA since 2018, reaching $6.8 billion [4] - The company has reduced its leverage by 25% since 2018 to a current level of 3.6 times, providing financial flexibility for acquisitions [4][5] - Williams plans to invest $3.4 billion in growth capital projects over the next two years and has a backlog of projects to support growth through 2027 [4] - The company has made $6.1 billion in acquisitions since 2021, including a recent $2 billion purchase of a natural gas storage portfolio [5] Dividend Growth Comparison - Williams has grown its dividend at a 6% compound annual rate since 2018, including a 6.1% increase earlier this year [6] - With a lower dividend payout ratio of 2.3 times coverage in 2024 compared to Kinder Morgan's approximately 2 times, Williams is positioned for mid-single-digit dividend growth [6] Investment Perspective - Kinder Morgan is suitable for investors seeking a high-yielding and reliable income stream with modest growth [7] - Williams, while offering a lower yield, is growing earnings and dividends faster, potentially leading to higher total returns over the long term [7]

Company Overview - Kinder Morgan (KMI) stock closed at $18.42, with a slight increase of +0.05% compared to the previous day, outperforming the S&P 500's loss of 0.72% [1] - Over the past month, Kinder Morgan shares have gained 4.78%, lagging behind the Oils-Energy sector's gain of 6.92% but outperforming the S&P 500's gain of 2.16% [1] Upcoming Earnings - The upcoming earnings per share (EPS) for Kinder Morgan is projected at $0.32, indicating a 6.67% increase year-over-year [1] - Revenue is expected to be $4.26 billion, reflecting a 9.62% growth compared to the same quarter last year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $1.17 per share and revenue at $16.8 billion, showing increases of +9.35% and +9.54% respectively from the previous year [2] - Recent analyst estimate revisions suggest a favorable outlook on the company's business health and profitability [2] Zacks Rank and Valuation - Kinder Morgan currently holds a Zacks Rank of 3 (Hold), with a recent upward shift of 0.34% in the EPS estimate [3] - The Forward P/E ratio for Kinder Morgan is 15.69, which is lower than the industry average of 16.94 [3] - The PEG ratio for Kinder Morgan stands at 5.23, compared to the industry average PEG ratio of 5.22 [3] Industry Context - The Oil and Gas - Production and Pipelines industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 154, placing it in the bottom 39% of over 250 industries [4] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [4]

Kinder Morgan, Inc. (KMI) has seen upward earnings estimate revisions for 2024 and 2025 in the past 30 days.The Zacks Consensus Estimate for KMI’ 2024 and 2025 earnings per share (EPS) is pegged at $1.17 and $1.21, respectively.What’s Favoring the Stock?Stable Dividend Growth: KMI’s recent dividend increase to 28.25 cents per share in fourth-quarter 2023, representing 2% year-over-year growth, underscores its commitment to returning value to shareholders. This consistent dividend policy, combined with a for ...

If you are considering investing in the midstream sector, Kinder Morgan (KMI 1.05%) will probably be one of the standouts. With a nearly $40 billion market cap and a geographically diverse business, it is an industry leader. Add in a 6.3% dividend yield, and there's a lot to like here. But you should get to know the company a little more before you jump aboard. Here's why.Buy Kinder Morgan?Touching on some of the positives up front, Kinder Morgan owns midstream assets that would be virtually impossible to r ...

Kinder Morgan (KMI) closed the latest trading day at $18.11, indicating a +0.44% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.Heading into today, shares of the oil and natural gas pipeline and storage company had gained 3.5% over the past month, lagging the Oils-Energy sector's gain of 6.39% and the S&P 500's gain of 5.11% in that ...

In the latest market close, Kinder Morgan (KMI) reached $17.97, with a +0.79% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.The oil and natural gas pipeline and storage company's shares have seen an increase of 7.34% over the last month, surpassing the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 2.7%.Market participa ...

JasonDoiy Kinder Morgan (NYSE:KMI) is one of the largest energy infrastructure companies, with a market capitalization of almost $40 billion. The company has seen its share price stagnate for the most part; however, it's continued to pay a dividend of almost 6.5%, while focusing on growth. We discussed the company's performance in December. However, with its recent earnings and full 2023 results, along with its stagnation in share price as the rest of the market improves, we feel it's important to highlight ...