#7 - Kinder Morgan (NYSE:KMI)
The last stock on our list is a play on the rebuilding of our nation’s infrastructure. Kinder Morgan (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company not only earns revenue from the price of energy, specifically natural gas and petroleum, but it also generates income from storing and transporting these liquids and others.
No matter how you view the nation’s renewable energy future, fossil fuels are going to play a significant role in building out that underlying infrastructure. Kinder Morgan relies on volume for its revenue. That was an issue in 2020. However, early indicators suggest that volume is increasing which should serve as a catalyst for KMI stock.
Kinder Morgan also currently has a very tasty dividend yield of 6.2% and has averaged a 107.50% dividend growth in the last three years. Kinder Morgan is not a growth stock, but the stock is up over 50% since November 2020.
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
- $26.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $26.25 (2.2% Downside)
The capital gains tax rate is a policy lever that politicians on both sides of the aisle use to express their belief on the role the government should play in the nation’s economy. Advocates of an economy fueled by the private sector seek to keep capital gains as low as possible.
These individuals are also likely to point out that taxing capital gains from after-tax dollars is taxing the same money twice. On the other hand, advocates of a more activist government seek to raise capital gains to pay for a more expansive government.
Does a capital gains tax affect investors? The fact is a capital gain is only realized when an asset, such as shares of a stock, are sold. However, since selling an asset doesn’t necessarily mean cashing out the investment, there can be many unintended consequences of such a tax hike.
When investors hold onto assets it can have an effect on their individual portfolios because they are not benefiting from diversification. And when investors are choosing to hold their assets rather than trade them, it can have an effect on the broader market as well.
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