This High-Yielding Dividend Stock Sees AI Supercharging Its Growth Prospects
Kinder Morgan's (NYSE: KMI) growth engine has been stuck in neutral for the past several years. It earned as much last year as it did in 2018. The gas pipeline company has battled headwinds from higher interest rates, contract roll-overs, and asset sales to strengthen its balance sheet, which offset the growing demand for natural gas.
However, those headwinds are fading while demand from liquefied natural gas (LNG) export facilities is surging. Those catalysts have the company returning to growth mode this year. On top of that, artificial intelligence (AI) is emerging as a new demand driver for natural gas. It could significantly enhance Kinder Morgan's growth prospects, potentially giving it even more fuel to continue increasing its 5.5%-yielding dividend.
U.S. electricity demand has grown very slowly over the years, averaging around 0.5% annually during the past two decades. However, there's growing consensus that demand growth will accelerate through the end of this decade. In recent months, industry experts have predicted that the demand for electricity in the U.S. could grow by 2.6% annually to as much as 4.7% annually until 2030. The main driver is AI and the new data centers needed to power that technology.
Source Fool.com
