Better Buy: Kinder Morgan vs. NextEra Energy Partners

If all you care about is a stock's dividend yield, then Kinder Morgan (NYSE: KMI) and its 5% yield is the easy winner over NextEra Energy Partners (NYSE: NEP) and its 3.9% yield. But you can't stop there if you want to make a good investment decision. Here are a few key issues to think about as you compare high-yielding Kinder Morgan to NextEra Energy Partners.

Kinder Morgan owns and operates a collection of midstream energy assets. In fact, it owns one of the largest portfolios of midstream assets in North America, and is a bellwether name in the industry. Roughly 90% of its cash flow is fee-based, meaning it gets paid simply for the use of the assets it owns. The often volatile prices of oil and natural gas aren't a major factor, providing a fairly stable stream of cash to support the company's dividend. As long as the world needs these carbon fuels, Kinder Morgan's business should hold up fairly well.

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Source Fool.com