Workflow
2 Top High-Yield Dividend Stocks You Can Confidently Buy and Hold Until at Least 2030
KMIKinder Morgan(KMI) The Motley Fool· The Motley Fool·2025-06-08 19:37

Core Viewpoint - Investing in high-yielding dividend stocks like ExxonMobil and Kinder Morgan offers potential for passive income while also presenting growth opportunities through significant capital investments and predictable cash flows [1][2][15] ExxonMobil - ExxonMobil has a strong track record of increasing its dividend for 42 consecutive years, leading the oil industry and achieving a milestone only 4% of S&P 500 companies have reached [4] - The company plans to invest 140billioninmajorprojectsanditsPermianBasindevelopmentprogramthrough2030,expectingreturnsofover30140 billion in major projects and its Permian Basin development program through 2030, expecting returns of over 30% on these investments [5] - This investment strategy could yield an additional 20 billion in earnings and 30billionincashflowby2030,assumingoilpricesaveragearound30 billion in cash flow by 2030, assuming oil prices average around 60 per barrel, translating to a 10% compound annual growth rate for earnings and an 8% growth rate for cash flow [6] - ExxonMobil estimates it could generate 165billioninsurpluscashthrough2030,whichwouldallowforincreasedshareholderdistributions,includingaplanned165 billion in surplus cash through 2030, which would allow for increased shareholder distributions, including a planned 20 billion stock repurchase in 2026 [7][8] Kinder Morgan - Kinder Morgan has extended its dividend growth streak to eight consecutive years, with a current yield of over 4%, and expects to continue this growth for at least the next five years [9] - The company benefits from highly contracted and predictable cash flows, with only 5% exposed to commodity prices and 69% secured through take-or-pay agreements or hedging contracts [10] - Kinder Morgan has 8.8billionincommerciallysecuredexpansionprojects,a8.8 billion in commercially secured expansion projects, a 5.8 billion increase from the previous year, including 8billioninnaturalgasrelatedexpansionsexpectedtogeneratesteadycashflowthrough2030[11]Thecompanyrecentlyacquiredanaturalgasgatheringandprocessingsystemfor8 billion in natural gas-related expansions expected to generate steady cash flow through 2030 [11] - The company recently acquired a natural gas gathering and processing system for 640 million, which will immediately enhance cash flow, and it has the financial flexibility to pursue further growth opportunities [12] - Kinder Morgan is actively exploring additional projects to supply gas to LNG export terminals and the power sector, anticipating increased demand driven by factors such as AI data centers [13][14] Growth Visibility - Both ExxonMobil and Kinder Morgan exhibit strong growth visibility through 2030, making them attractive options for investors seeking to buy and hold high-yielding dividend stocks [15]