This Ridiculously Cheap Dividend Stock Could Fuel Passive Income for Years
Kinder Morgan (NYSE: KMI) currently offers investors a 6.2% dividend yield. In simple terms, that means the natural gas pipeline giant can turn a $1,000 investment into a $62 annual passive income stream. For comparison, that same $1,000 investment would only generate about $17 of annual passive income from an S&P 500 index fund, given its current 1.7% dividend yield.
The big driver of Kinder Morgan's much higher dividend yield is its dirt-cheap valuation. Add that to its other attractive qualities, and it's an excellent option for those seeking to generate passive income.
Kinder Morgan expects to produce about $2.17 per share of distributable cash flow (a proxy for free cash flow) in 2022. That's about 5% above its initial budget, thanks to stronger conditions in the oil and gas market because of higher prices.
Source Fool.com
