12 Hot Oil Stocks to Buy According to Hedge Funds

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

Gain Over Past 12 Months: 72.61%

Number of Hedge Fund Holders: 42

Coming at number 5 on our list of Hot Oil Stocks to Invest in is Kinder Morgan, Inc. (NYSE:KMI), the largest independent transporter of petroleum products in North America, transporting approximately 2.4 million barrels per day. The company’s pipelines transport natural gas, gasoline, crude oil, carbon dioxide, and more.

Kinder Morgan, Inc. (NYSE:KMI) continues to expand and bring newly acquired assets into its business. The company’s 2023 acquisition of STX midstream is already bearing fruit and earlier this month, it also struck a deal with Outrigger Energy to acquire natural gas gathering and processing assets in North Dakota for $640 million. Notably, Kinder Morgan’s project backlog increased by 70% to $5.1 billion during the first nine months of 2024, a clear indicator of expanding industrial and energy capacity, which has broader economic implications. As more and more of these projects come online, the company is expected to report bigger cash flow and higher dividends.

In contrast to many other energy companies which depend heavily on fluctuating energy prices, Kinder Morgan, Inc. (NYSE:KMI) has a policy of tying a vast majority of its customers into long-term contracts with fixed prices, giving relative stability to its cash flow and earnings and helping it plan its long-term future investments more accurately.

On October 16, 2024, Kinder Morgan, Inc. (NYSE:KMI) announced a quarterly dividend of $0.2875 per share, and as its new assets get integrated, the company remains confident that it will increase the dividend for the eighth consecutive year also in 2025.

Kinder Morgan, Inc. (NYSE:KMI) was also included in our list of the 10 Top Performing Dividend Stocks of 2024.