Is Kinder Morgan the Best Dividend Stock for You?
Energy stock Kinder Morgan (NYSE: KMI) has a 6.5% dividend yield, which is well above the 1.4% you'd collect from an S&P 500 index fund. The investment-grade midstream giant has increased its dividend annually since 2018. There are clear reasons to like the stock, but that doesn't mean investors should buy it over other options.
Here's why Kinder Morgan may not be the best dividend stock for you.
Kinder Morgan is a midstream company, which means it owns pipelines, storage, and transportation assets in the energy sector. This is a fairly boring segment of the industry, known for consistency even through oil's inevitable downturns. The key is that midstream companies generally charge fees for the use of their assets, with the actual price of the commodities flowing through the system being less important than demand for the system.
Source Fool.com
