Better Buy: Kinder Morgan vs. Plains All American Pipeline
Midstream energy giant Kinder Morgan (NYSE: KMI) is offering investors a fat 7% dividend yield, while Plains All American's (NYSE: PAA) yield is even higher at nearly 10%. Dividend investors would be right to salivate at these yields, but there's more to know about this pair of pipeline operators before you jump aboard. In the end, one of these two names is clearly less desirable than the other. But that may not mean the other one is a great buy.
Plains All American has something of a troubled past when it comes to shareholder distributions. When the energy sector fell upon hard times between mid-2014 and early 2016, the master limited partnership was carrying a heavy debt load. Add in weak operating results due to the energy downturn at the time, and the end result was a 20% distribution cut at the end of 2016.
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Source Fool.com
