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This 4%-Yielding Dividend Stock Continues to Provide a Safe Haven From Market Storms
KMIKinder Morgan(KMI) The Motley Fool·2025-04-18 07:23

Core Viewpoint - Kinder Morgan demonstrates resilience amid market volatility, showcasing a stable business model and strong cash flow, making it a safe investment option during uncertain economic times [2][3][13] Financial Performance - Kinder Morgan reported nearly 2.2billioninadjustedEBITDAforthefirstquarter,reflectinga12.2 billion in adjusted EBITDA for the first quarter, reflecting a 1% increase from the previous year [4] - The company generated approximately 1.2 billion in cash flow from operations, sufficient to cover its dividend payment of 642million[6]A2642 million [6] - A 2% increase in dividends marks the eighth consecutive year of dividend growth for Kinder Morgan [7] Business Segments - Strong operational performance was noted in natural gas pipelines, carbon dioxide, and terminals, while the products pipelines segment experienced a decline due to scheduled maintenance [5] - The company closed a 640 million acquisition of a natural gas gathering and processing system in the Bakken Formation, contributing to its growth strategy [6] Growth Outlook - Kinder Morgan's backlog of expansion projects reached 8.8billion,anincreaseofnearly88.8 billion, an increase of nearly 8% from the end of the previous year, indicating a robust growth trajectory [9] - The addition of approximately 900 million in new projects during the quarter, including the $431 million Bridge pipeline project, enhances the company's growth outlook [10] - The company anticipates continued demand growth for natural gas, driven by LNG exports and increasing power demand [8] Investment Proposition - Kinder Morgan's stable cash flow, supported by long-term fee-based contracts, positions it as a reliable investment during economic turbulence [13] - The company's expansion projects are expected to provide incremental stable cash flow over the next five years, further supporting dividend growth [11][12]