Can Kinder Morgan Support Its Dividend?

The broader energy sector can be volatile, but midstream companies like Kinder Morgan (NYSE: KMI) are supposed to be fairly consistent. That's because, in many cases, they get paid fees for transporting oil and natural gas -- so commodity price volatility isn't a big issue. But after a cut in 2016, investors should keep a close eye on Kinder Morgan's dividend-paying ability. Here are some key facts.

Times were tough in the energy sector in 2016, and accessing capital markets for cash was difficult. With a heavy debt load, Kinder Morgan was forced to make a call between supporting its dividend or using that cash to make the long-term capital investments that would grow its business. The midstream giant made the right call for the company, but investors who had trusted it to be a reliable dividend payer were let down.

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Source Fool.com