13 Best Dividend Stocks to Buy Under $50

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

Number of Hedge Fund Holders: 42

Share Price as of the Close of December 20: $26.85

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America, which owns and operates oil and gas pipelines and terminals. The stock is generating strong returns this year, surging by nearly 52% since the start of 2024. A key factor behind this growth is the increasing demand, which is filling up capacity on its existing pipelines and leading to higher contract renewal rates. Additionally, the company is benefiting from the positive effects of high-return expansion projects and its $1.8 billion acquisition of STX Midstream last year.

Kinder Morgan, Inc. (NYSE:KMI)’s Tennessee Gas Pipeline subsidiary has announced plans to move forward with the Mississippi Crossing Project (MSX Project), which is expected to begin commercial operations in November 2028, contingent on obtaining the necessary permits. The company plans to invest $1.4 billion in the initial phase of the project. In addition, it is in discussions with customers to potentially add up to 0.4 billion cubic feet per day of extra capacity, which would require further investment to expand the pipeline’s horsepower to accommodate the additional gas. The MSX Project aims to boost natural gas supplies to markets in the Southeast, helping to meet rising demand in the region while lowering energy costs.

Kinder Morgan, Inc. (NYSE:KMI) demonstrated a strong cash position in the third quarter of 2024. The company ended the quarter with $108 million available in cash and cash equivalents, up from $83 million at the end of December 2023. Moreover, it generated $1.2 billion in operating cash flow and its free cash flow amounted to $0.6 billion. On October 16, the company declared a quarterly dividend of $0.2875 per share, which was consistent with its previous dividend. Overall, it has raised its dividends for seven years running, which makes it one of the best dividend stocks under $50. The stock has a dividend yield of 4.25%, as of December 23.

Kinder Morgan, Inc. (NYSE:KMI) was included in 42 hedge fund portfolios at the end of Q3 2024, up from 41 in the previous quarter, as per Insider Monkey’s database. The stakes held by these funds have a total value of nearly $1.3 billion. With over 18.2 million shares, Orbis Investment Management was the company’s leading stakeholder in Q3.