This 6.3%-Yielding Dividend Stock Showcases Why You Could Hold it Forever
There have been many questions about what will happen to legacy energy infrastructure as the world transitions from fossil fuels to cleaner alternatives. That uncertainty has weighed on energy infrastructure companies like Kinder Morgan (NYSE: KMI). It's why the company trades at a low valuation (8.3 times forward earnings versus 18.2 times for the S&P 500) and high dividend yield (6.3% compared to 1.7% for the S&P 500).
However, as Kinder Morgan's latest capital project completions showcase, it can transition with the rest of the world. The company should have the fuel to continue paying its big-time dividend for years to come. That makes it look like an attractive long-term income investment.
Kinder Morgan recently completed its Southern and Northern California renewable diesel (RD) hub projects. The first-of-their-kind projects will allow it to ship RD by pipeline to markets in the state:
Source Fool.com