This Stock's 6.6%-Yielding Dividend Remains on Rock-Solid Ground
Kinder Morgan (NYSE: KMI) has one of the highest-yielding dividends in the S&P 500. Its 6.6%-yielding payout is in the top 5% of the index, where the average yield is 1.6%.
While a high dividend yield can sometimes indicate a company that's at risk of needing to cut its payouts, that's not the case for Kinder Morgan. That was evident in the natural gas pipeline giant's third-quarter earnings.
Kinder Morgan generated a little less than $1.1 billion of distributable cash flow (DCF) during the third quarter. That was down slightly from the prior-year period, when it produced just over $1.1 billion in DCF. It displayed that income stability during a relatively turbulent period for the energy markets, with oil and natural gas prices slumping year over year. While declining energy prices impacted the company's carbon dioxide operations, the overall stability of its earnings helped mute that impact.
Source Fool.com
