Don't Let This Dividend Stock's High Yield Fool You. It Has the Fuel to Deliver High-Octane Growth Through 2030.
A high dividend yield often indicates that a company's growth days are in the rearview mirror. Without a lot of attractive investment opportunities, these companies return a significant percentage of their cash flow to investors by paying dividends. That used to describe Kinder Morgan (NYSE: KMI). However, the narrative surrounding the high-yielding natural gas pipeline giant has dramatically changed over the past year. It expects natural gas demand to surge by 2030, which should fuel high-octane earnings growth in the coming years. It currently yields 4.3%, but it could also have the fuel to produce strong total returns.Natural gas industry experts predict that demand will surge over the coming years. Analysts at Wood Mackenzie anticipate that natural gas demand will increase by 20 billion cubic feet per day (Bcf/d) by 2030 from last year's level of 110 Bcf/d. Several factors fuel that view, including growing export demand for liquefied natural gas and to Mexico, rising power demand, and expanding industrial, commercial, and residential demand. Continue reading
A high dividend yield often indicates that a company's growth days are in the rearview mirror. Without a lot of attractive investment opportunities, these companies return a significant percentage of their cash flow to investors by paying dividends.
That used to describe Kinder Morgan (NYSE: KMI). However, the narrative surrounding the high-yielding natural gas pipeline giant has dramatically changed over the past year. It expects natural gas demand to surge by 2030, which should fuel high-octane earnings growth in the coming years. It currently yields 4.3%, but it could also have the fuel to produce strong total returns.
Natural gas industry experts predict that demand will surge over the coming years. Analysts at Wood Mackenzie anticipate that natural gas demand will increase by 20 billion cubic feet per day (Bcf/d) by 2030 from last year's level of 110 Bcf/d. Several factors fuel that view, including growing export demand for liquefied natural gas and to Mexico, rising power demand, and expanding industrial, commercial, and residential demand.
