Kinder Morgan and Its 6.6% Yield: Bear vs. Bull
The S&P 500 Index is offering a pitiful yield of just 1.3%, which makes the 6.6% yield on offer from Kinder Morgan (NYSE: KMI) look incredibly appealing. And the truth is, relatively speaking, it is. But there's no such thing as a perfect investment, so here's a look at the bull case for Kinder Morgan and the bear case.
Kinder Morgan's yield is five times larger than that of the S&P 500 Index. For dividend-focused investors, that's an awfully powerful draw. Better yet, it has been increasing its dividend annually since 2018, including a hike in pandemic hit 2020. The energy sector experienced a deep downturn that year as economic closures led to a quick drop in energy demand, and a number of very large names in the broader energy sector, like BP and Shell, cut their dividends to save cash. So Kinder Morgan's commitment to shareholders despite the headwinds of the coronavirus is a pretty big positive.
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Source Fool.com
