#7 - Kinder Morgan (NYSE:KMI)
Kinder Morgan Inc. (NYSE: KMI) is a midstream energy company that gives your portfolio an attractive option no matter what happens to oil prices. The company operates a network of pipelines to move oil, natural gas, refined petroleum, and other energy products through the United States and Canada.
Due to strong natural gas demand, KMI stock is up 18% for the year. The company’s year-over-year revenue and earnings aren’t particularly impressive, but that’s because oil prices remain lower than expected.
At the risk of sounding like the broken clock, it still seems like a case of when, not if, when it comes to oil prices. Growing geopolitical tensions combined with an expected increase in demand as interest rates come down are just two reasons why oil prices are likely to rise no matter the outcome of November’s election.
Analysts continue to have an upside of more than 5% on KMI stock. And shareholders also get a dividend with a juicy 5.48% yield.
About Kinder Morgan
Kinder Morgan, Inc operates as an energy infrastructure company primarily in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline, and storage systems; natural gas gathering systems and natural gas processing and treating facilities; natural gas liquids fractionation facilities and transportation systems; and liquefied natural gas gasification, liquefaction, and storage facilities.
Read More - Current Price
- $28.61
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $25.36 (11.3% Downside)
The attraction of stocks under $50 is that they allow investors to take a substantial position for $1,000 or less. When you combine that low price with an attractive, reliable dividend, you will increase your total return. And when you reinvest those dividends over time, your portfolio will benefit from the compounding effect.
MarketBeat has a variety of screening tools to help you find the best dividend stocks for the criteria that fit your investment needs. The stocks in this presentation were found by using the MarketBeat stock screener and looking for stocks with a price under $50 and a dividend yield above 2%. That's above the average dividend yield of stocks in the S&P 500.
However, if picking individual stocks isn't for you, an attractive option could be the ProShares S&P 500 Aristocrats ETF (BATS: NOBL). This fund includes 50 stocks that are part of an exclusive group of companies that have increased their dividend for at least 25 consecutive years. The NOBL ETF offers a higher yield than the S&P 500 and a bit more aggressive dividend growth that acts as a hedge against inflation.
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