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
-
Owning dividend stocks can be a great way to both generate cash flow and beat the market long term. And if you can find stocks that are over...
-
I wanted to find an ideal list of stocks with high dividend yields. The stocks would have to be cheap as well. And the dividends would have ...
-
Long-time readers know I’m a big fan of the insurance industry because of one quirk in their business model. Customers always pay premiums u...
-
In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those...
-
It has been a glum time for ExxonMobil (NYSE:XOM) shareholders. Regardless of whether you’re looking at the past one year, five years, or te...
-
Investors tend to gravitate to dividend stocks, particularly when those equities increase their payout on an annual basis. When these types ...
-
“Cheap” stocks aren’t necessarily the best cheap stocks to buy. And dividend stocks, even those with a high payout, aren’t necessarily safe....
-
This company's management has raised the quarterly distribution 71 straight quarters, 22 straight years - it will be a Dividend Aristocr...
-
The markets have been doing very well over the past several weeks, and finding some good bargains has been a bit challenging of late. Howeve...
-
Dividend-paying companies are beacons of profitability. Generally speaking, a company isn't going to share a percentage of its profit or...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.