First up is $37 billion gas pipeline stock Kinder Morgan (KMI). To be fair, KMI is as close to a "gimme" on the dividend front as it gets. The firm is technically a holding company that owns the general partner and incentive distribution rights for Kinder Morgan Energy Partners (KMP) and El Paso Pipeline Partners (EPB), two MLPs; in other words, its an investment vehicle thats designed to maximize distribution income for investors. That's good for a whopping 4.57% dividend yield at current prices.
One of the biggest tailwinds for KMI right now is the popularity of natural gas. As gas remains historically cheap vs. alternatives such as crude oil, nat gas volumes should continue to tick higher -- and KMI's midstream energy assets should continue to ring in fees. Otherwise, commodity prices have a pretty small impact on the midstream business, which simply charges for transportation without a lot of exposure to the price of nat gas in the market.One of the big benefits of KMI (besides the fact that it's the largest midstream company out there) is that it's a conventional C corporation rather than an MLP. That means that it sports a much simpler tax treatment for investors. While long-term growth could be challenged by the firm's current scale, now's the time to lock in a huge cost yield on shares.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV