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Is Kinder Morgan Still a Stock Worth Buying?
Yahoo Financeยท 2025-11-03 08:32
Core Viewpoint - Kinder Morgan is a significant player in the energy infrastructure sector, boasting a 4.4% dividend yield that has been consistently increased for eight years, making it worthy of investor attention [2][4]. Company Overview - Kinder Morgan operates 79,000 miles of pipeline and 139 terminals, positioning it as one of the largest energy infrastructure companies in the U.S. [2]. - The company has a market capitalization of $58 billion, ranking it sixth in the energy sector [3]. Stock Performance - Year-to-date, Kinder Morgan's stock has declined by 1.3%, underperforming both the energy sector, which has increased by 5.4%, and the S&P 500 index, which has risen by 17.5% [3]. - The forward price-to-earnings ratio stands at 19, the fifth-highest in the energy sector, indicating that the stock is steady but not particularly cheap [5]. Dividend Analysis - The 4.4% dividend yield is competitive compared to the energy sector and S&P 500, but it is only slightly above the 10-year Treasury note yield of 4.11% and about 0.5% lower than investment-grade corporate debt [4]. - Kinder Morgan has a high dividend payout ratio of 95%, suggesting limited room for error in maintaining the dividend [4]. Analyst Ratings - Among analysts, 12 out of 21 rate Kinder Morgan as a buy, while 9 have it as a hold, with no sell ratings. The average 12-month price target is $31, indicating an 18% upside potential [5]. Investment Considerations - Despite the attractive dividend yield, the stock's growth potential is questioned, and it is not currently listed among the top 10 stock recommendations by The Motley Fool Stock Advisor [7][8].