Kinder Morgan (KMI) is in a class of its own among midstream energy firms. But despite being one of the largest firms dedicated to moving crude oil, natural gas and other energy commodities, KMI stock has been taken to the woodshed this past year, down over 20% in the last 12 months. And yet, despite the declines to Kinder Morgan stock, KMI has managed to increase its cash flows and dividends, and expand its portfolio of midstream assets.
So what gives? Is KMI stock misunderstood, or is there something sinister going on? It appears like the former. For investors, this is a case of the market throwing out the bath with the bath water. Kinder Morgan could be one of the biggest values in the midstream sector, and the time to buy KMI stock is now. Given its strong history of rising cash flows and growth, KMI stock’s recent sell-off makes it a compelling buy for investors. Shares can currently be had for price-to-DCF metric- which is better way to gauge midstream and MLP shares- of 16. That makes it a pretty strong buy vs. the overall stock market. Especially, when you consider it’s yielding a hefty 6%.
Source: InvestorPlace
Related Articles:
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
- All Investing Involves Risk
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Utility stocks have been relatively volatile in the recent past. However, most utility stocks have a low beta and have a stable cash flow vi...
-
Buy stable dividend stocks that pay more than any other relatively risk-free bond in the world will. As investors grow tired of not even bea...
-
Many investors search for safe, dividend-paying stocks. As John D. Rockefeller once said: "Do you know the only thing that gives me ple...
-
Dividend stocks have fallen out of fashion during the pandemic. With interest rates at rock-bottom levels, investors have fled from assets l...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
With interest rates near zero, many investors are turning to dividend stocks for income. And for some investors, the higher the yield, the b...
-
The U.S. economy officially entered into a recession in February, and challenging conditions will likely continue in the near future. The co...
-
Energy Transfer (NYSE:ET) pays a monster cash distribution. Given the big slide in its unit price, -- they're down more than 50% in the ...
-
The three cybersecurity investments to purchase offer ways to profit from intellectual property protection and their importance shined on Ju...
-
Prices of energy commodities like natural gas are important for consumers and investors alike. Earlier in the year, natural gas prices in th...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.