5 Best Dividend Stocks For Inflation

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

Number Of Hedge Fund Holders: 40

Dividend Yield as of June 24: 6.74%

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America that operates through four business segments: Natural Gas Pipelines, Products Pipelines, Terminals, and CO2. The company’s 85,000 miles of pipelines serve major consuming domestic markets and transport approximately 40% of the natural gas consumed in the United States. The company has raised its dividends for 5 years in a row. As of June 24, the stock’s dividend yield stood at 6.74%.

Earlier this April, Wells Fargo analyst Michael Blum upgraded Kinder Morgan, Inc. (NYSE:KMI) to Equal Weight from Underweight with a price target of $21, up from $19, to reflect higher assumed multiples for refined products assets in his sum-of-the-parts valuation. Although the analyst still views Kinder Morgan, Inc. (NYSE:KMI) as a defensive midstream company, he believes the company could benefit from a number of tailwinds on account of surging inflation, oil prices hovering around $100/Bbl, and robust demand for natural gas/LNG. These include higher products pipeline growth, higher CO2 segment earnings, strong demand for natural gas, and potential LNG liquefaction projects.

On April 20, Kinder Morgan, Inc. (NYSE:KMI) announced its financial results for the first fiscal quarter of 2022, posting an EPS of $0.32, beating Street estimates by $0.04. The $4.29 billion revenue surpassed market consensus forecasts by $546.32 million.

At the end of Q1 2022, 40 hedge funds were bullish on Kinder Morgan, Inc. (NYSE:KMI) with stakes worth $1.34 billion. This is compared to 39 positions in the previous quarter with stakes worth $998.85 million. The hedge fund sentiment for the stock is positive.