Here's Why Kinder Morgan Is Happy to Move on From October

Here's Why Kinder Morgan Is Happy to Move on From October

Shares of North American pipeline leader Kinder Morgan (NYSE: KMI) fell about 5.5% last month after investors sold following the company's ho-hum third-quarter 2017 earnings announcement. While Mr. Market remains impatient with the stock, which has moved sideways since early 2015, there are multiple signs that management's turnaround strategy is working.

The company is on pace to increase the annual dividend per share from $0.50 this year to $0.80 in 2018. That shouldn't be a problem, especially considering that the company generated $0.47 per share of distributable cash flow in the most recent quarter. The company is on pace to reach its long-term leverage ratio of five times net debt to EBITDA (adjusted earnings before interest, taxes, depreciation, and amortization). Essentially, the stock's continued slide seems a bit overdone.

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Source: Fool.com