Better Buy: Enterprise Products Partners L.P. vs. Kinder Morgan, Inc.
Kinder Morgan, Inc. (NYSE: KMI) and Enterprise Products Partners L.P. (NYSE: EPD) are two of the largest midstream oil and gas players in the United States. Kinder cut its dividend in 2016, but is set to start hiking it again in 2018.
Is now the time to pick up this recovering giant? Or would you be better off with Enterprise, which has a higher yield today but has announced plans to slow its distribution growth? Here are some key facts to consider beyond the dividend.
Kinder Morgan was expanding aggressively when the oil market started to turn south in mid-2014. Although its business was heavily fee-based, the decline in oil prices made it hard for the company to raise capital for growth. Management made the tough call to cut the dividend in order to free up cash to continue its expansion plans.
Source: Fool.com
Enterprise Products Partners L.p. Stock
Enterprise Products Partners L.p. is currently one of the favorites of our community with 19 Buy predictions and no Sell predictions.
Based on the current price of 15.02 € the target price of 31 € shows a potential of 106.34% for Enterprise Products Partners L.p. which would more than double the current price.
