Why Kinder Morgan Vastly Underperformed the S&P 500 in 2023
Shares of Kinder Morgan (NYSE: KMI) slipped 2.4% in 2023, according to data provided by S&P Global Market Intelligence. While that wasn't a bad performance, it significantly underperformed the S&P 500 (which gained 24.2% in 2023). On a more positive note, Kinder Morgan's total return was a positive 4.1% in 2023 after adding its high-yielding dividend.
Higher interest rates, lower oil prices, and other factors weighed on the natural gas pipeline stock last year. Here's a quick look back at 2023 and what investors can expect in the coming year.
Kinder Morgan expected rising interest rates to be a headwind last year. The pipeline giant provided its 2023 financial guidance in December 2022. At the time, the company anticipated that its distributable cash flow (DCF) would decline from $2.17 per share to $2.13 per share. The culprit was the expectation that higher interest rates would lop $0.15 per share from its DCF last year.
Source Fool.com
