Better Buy: Enbridge vs. Kinder Morgan

The midstream niche of the energy industry has been hit hard by the coronavirus pandemic. Canada's Enbridge (NYSE: ENB) is down roughly 16% so far in 2020, while Kinder Morgan (NYSE: KMI), based in the United States, is off by 30%. However, with largely fee-based businesses, this pullback could be a buying opportunity for dividend investors. Here's what you need to know to compare these two industry giants.

Kinder Morgan's yield is roughly 7% today. That's generous, given that the yield of the S&P 500 Index, using SPDR S&P 500 ETF as a proxy, is roughly 1.6%. But Enbridge's yield, at 7.4%, actually edges Kinder Morgan out. For dividend investors looking to maximize the income their portfolios generate, that extra 40 basis points could be enough to tip the scales here. But in the grand scheme of things, the two midstream giants are on pretty equal footing yield-wise.

Image source: Getty Images.

Continue reading

Source Fool.com