Top 20 Dividend Stocks of 2024

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

Number of Hedge Fund Holders: 42

Kinder Morgan, Inc. (NYSE:KMI) is a North American energy infrastructure company that owns and operates oil and gas pipelines and terminals. The company expects a 9% increase in its adjusted earnings per share this year, benefiting from the easing of challenges related to asset sales and large contract rollovers, as well as recent investments in expansion projects, such as the acquisition of STX Midstream at the end of last year. In addition, the company’s long-term growth prospects have significantly improved. It has recently added several large natural gas pipeline projects to its backlog, with expected service dates in 2028. Smaller projects that will come into commercial service in the coming years have further strengthened and extended its growth outlook. The stock has surged by over 54% in the past 12 months, outperforming the broader market.

Kinder Morgan, Inc. (NYSE:KMI)’s growth is primarily fueled by increasing demand, which has optimized capacity utilization on current pipelines and improved contract renewal rates. The company is also benefiting from high-return expansion projects and its $1.8 billion acquisition of STX Midstream completed last year.

In the third quarter of 2024, Kinder Morgan, Inc. (NYSE:KMI) reported strong financial results, ending the period with $108 million in cash and cash equivalents, up from $83 million at the end of December 2023. The company generated $1.2 billion in operating cash flow and $0.6 billion in free cash flow. On October 16, Kinder Morgan declared a quarterly dividend of $0.2875 per share, keeping the payout consistent with the previous quarter. The company has a seven-year history of steady dividend growth. As of December 30, the stock supports a dividend yield of 4.19%.

Insider Monkey’s database of Q3 2024 indicated that 42 hedge funds held stakes in Kinder Morgan, Inc. (NYSE:KMI), up from 41 in the previous quarter. These stakes are worth nearly $1.3 billion.