×
S&P 500   3,808.68 (-0.34%)
DOW   30,958.20 (+0.04%)
QQQ   283.66 (+0.04%)
AAPL   139.87 (+1.77%)
MSFT   260.24 (+1.47%)
META   163.89 (+2.00%)
GOOGL   2,239.06 (-0.05%)
AMZN   109.50 (+1.96%)
TSLA   674.20 (-3.41%)
NVDA   154.69 (-3.21%)
NIO   21.46 (-4.03%)
BABA   115.97 (-0.68%)
AMD   77.13 (-4.52%)
MU   55.83 (-3.51%)
CGC   3.54 (-1.94%)
T   20.76 (+0.73%)
GE   64.22 (-2.52%)
F   11.50 (-2.62%)
DIS   95.34 (-0.60%)
AMC   13.36 (-0.15%)
PFE   51.08 (+0.83%)
PYPL   71.49 (-0.46%)
NFLX   177.59 (-1.12%)
S&P 500   3,808.68 (-0.34%)
DOW   30,958.20 (+0.04%)
QQQ   283.66 (+0.04%)
AAPL   139.87 (+1.77%)
MSFT   260.24 (+1.47%)
META   163.89 (+2.00%)
GOOGL   2,239.06 (-0.05%)
AMZN   109.50 (+1.96%)
TSLA   674.20 (-3.41%)
NVDA   154.69 (-3.21%)
NIO   21.46 (-4.03%)
BABA   115.97 (-0.68%)
AMD   77.13 (-4.52%)
MU   55.83 (-3.51%)
CGC   3.54 (-1.94%)
T   20.76 (+0.73%)
GE   64.22 (-2.52%)
F   11.50 (-2.62%)
DIS   95.34 (-0.60%)
AMC   13.36 (-0.15%)
PFE   51.08 (+0.83%)
PYPL   71.49 (-0.46%)
NFLX   177.59 (-1.12%)
S&P 500   3,808.68 (-0.34%)
DOW   30,958.20 (+0.04%)
QQQ   283.66 (+0.04%)
AAPL   139.87 (+1.77%)
MSFT   260.24 (+1.47%)
META   163.89 (+2.00%)
GOOGL   2,239.06 (-0.05%)
AMZN   109.50 (+1.96%)
TSLA   674.20 (-3.41%)
NVDA   154.69 (-3.21%)
NIO   21.46 (-4.03%)
BABA   115.97 (-0.68%)
AMD   77.13 (-4.52%)
MU   55.83 (-3.51%)
CGC   3.54 (-1.94%)
T   20.76 (+0.73%)
GE   64.22 (-2.52%)
F   11.50 (-2.62%)
DIS   95.34 (-0.60%)
AMC   13.36 (-0.15%)
PFE   51.08 (+0.83%)
PYPL   71.49 (-0.46%)
NFLX   177.59 (-1.12%)
S&P 500   3,808.68 (-0.34%)
DOW   30,958.20 (+0.04%)
QQQ   283.66 (+0.04%)
AAPL   139.87 (+1.77%)
MSFT   260.24 (+1.47%)
META   163.89 (+2.00%)
GOOGL   2,239.06 (-0.05%)
AMZN   109.50 (+1.96%)
TSLA   674.20 (-3.41%)
NVDA   154.69 (-3.21%)
NIO   21.46 (-4.03%)
BABA   115.97 (-0.68%)
AMD   77.13 (-4.52%)
MU   55.83 (-3.51%)
CGC   3.54 (-1.94%)
T   20.76 (+0.73%)
GE   64.22 (-2.52%)
F   11.50 (-2.62%)
DIS   95.34 (-0.60%)
AMC   13.36 (-0.15%)
PFE   51.08 (+0.83%)
PYPL   71.49 (-0.46%)
NFLX   177.59 (-1.12%)

High-Yield Kinder Morgan Is Still A Buy

Friday, April 22, 2022 | Thomas Hughes
High-Yield Kinder Morgan Is Still A Buy

Sell-Side Support Is Driving Kinder Morgan Higher 

Kinder Morgan (NYSE: KMI) caught our eye last year as a high-yielding value that we might want to own. The company was exiting a period of underperformance and reorganization and looking ahead to a favorable market environment. Now, a year later, the value and yield aren’t quite what they were but the stock is still a buy. Kinder Morgan trades at only 18X its earnings and pays what we view as a safe 5.6% yield. We say safe because the company is living within its cash flow, budgeting appropriately, and business fundamentals continue to be strong. 

“The company is off to a great start this year and once again generated robust earnings and strong coverage of this quarter’s dividend. We continue to live within our cash flow, have reduced our debt by more than $11 billion since 2015, and plan for this year to be the fifth consecutive year of increased dividends. During 2022 we expect to once again fund our expansion capital opportunities internally, meet or exceed our debt metric goal, and return excess cash to our shareholders through a dividend increase and opportunistic share repurchases,” said KMI Executive Chairman Richard D. Kinder.

The sell-siders are in general agreement that this is a stock to own. The consensus rating is a firm Hold with an uptrending price target. The bad news is the Marketbeat.com consensus target assumes the stock is fairly valued at current price levels, the good news is the consensus is up in the 12, 3, and 1-month comparison and the high price target is the most recent. There have been two commentaries released since the Q1 report including two price target increases and the high-price target of $22 which implies 15% of upside for the stock and we think that target will creep higher over the next 12 months as well. 


Kinder Morgan Beats In Q1, Guides Favorably 

Kinder Morgan was expected to post a YOY decline in revenue and earnings but there is a one-off factor to consider. That factor was Winter Storm Uri and the takeaway is that revenue and earnings fell much less than expected. The company reported $4.29 billion in consolidated revenue for a decline of 17.7% over last year but beat the consensus estimate by over 1100 basis points. The performance was driven by strength in the Natural Gas and CO2 segments and the outlook for those businesses is firming. On the bottom line, the company reports $0.32 in earnings, down from last year’s $0.60, but $0.04 or 1400 basis points better than expected. 

 “Excluding Uri-related earnings from our 2021 results, earnings per share for the quarter were up 17% and DCF per share was up 16% as compared to the first quarter of 2021.”

Kinder Morgan Raises 2022 Dividend 

Kinder Morgan raised its dividend by 3% during the quarter bringing the yield up to 5.6%. This is the 5th consecutive increase for the company and not the last if the balance sheet, results, and outlook have anything to do with it. 

Turning to the chart, shares of KMI have been trending higher since December 2022 and are on track to continue that trend. Premarket action has the stock up another 1% already and trading at $19.97 and the highest level since the pandemic began. Assuming the market follows through on the rally, we see this stock breaking out to a new high and moving higher as the year progresses. In that scenario, the next target for resistance is near $22. 

High-Yield Kinder Morgan Is Still A Buy

Kinder Morgan is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Kinder Morgan (KMI)
2.6314 of 5 stars
$16.98-1.3%6.54%37.73Hold$20.33
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Kinder Morgan right now?

Before you consider Kinder Morgan, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kinder Morgan wasn't on the list.

While Kinder Morgan currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastHow to Profit In The Bear Market

Today, Kate is joined by a repeat guest, Rob Isbitts of Sungarden Investment Publishing. Rob specializes in ETF portfolios designed to deliver returns in any kind of market condition, including the current bear. In this conversation, Rob gives specific ideas for handling various allocations in your portfolio, and discusses how to approach inverse ETFs.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.