10 Best Robinhood Stocks Under $20

5. Kinder Morgan, Inc. (NYSE:KMI)

Number of Hedge Fund Holders: 43

Share Price as of June 12: $19.88

Kinder Morgan, Inc. (NYSE:KMI) is a Texas-based energy infrastructure company that runs through various segments, including Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The company has an ownership interest or runs 79,000 miles of pipelines, 139 terminals, and 702 billion cubic feet of working natural gas storage capacity. Moreover, the company’s renewable natural gas generation capacity is nearly 6.1 billion cubic feet (Bcf) per year with an additional 0.8 Bcf in development.

Kinder Morgan, Inc. (NYSE:KMI) is one of the best Robinhood stocks under $20 as it provides healthy shareholder returns and has shown notable growth in recent years. As we discussed in our article about the best natural gas and oil dividend stocks, the company has a strong cash flow position, which makes its dividend payments secure. In April 2024, the company marked 7 consecutive years of dividend growth. It has a dividend yield of 5.82%, as of June 12.

With its investment-grade balance sheet, Kinder Morgan, Inc. (NYSE:KMI) plans to keep its dividend yield at 6% and focus on share repurchases. Since 2016, the company’s adjusted EPS has grown at a CAGR of 8%, leverage decreased by 26%, and it paid out over $20 billion in dividends and share repurchases as of Q1 2024.

Similar to utilities stocks, AI data centers also bring good news for energy infrastructure company, Kinder Morgan, Inc. (NYSE:KMI). The company is well-positioned to capitalize on the growing need for reliable and affordable energy. The company’s strategic focus on natural gas, along with the challenges of integrating renewables into the grid, emphasizes the importance of its assets in meeting future energy demands.

At a stake value of $1.146 billion, 43 hedge funds held positions in the stock in the first quarter. As of Q1, FPR Partners is the largest shareholder in the company and has a position worth $152.167 million.