2 No-Brainer High-Yield Energy Giants to Buy Right Now for Less Than $500

As an investor, you're always on the lookout for high-yield, low-risk opportunities. Energy giants Kinder Morgan (KMI) and Williams (WMB) are two such no-brainer investments that you can make right now for less than $500. Let's dive into why these companies are perfect for your portfolio.



Kinder Morgan and Williams are two energy giants with extensive pipeline networks that contribute to their stable cash flows and dividend growth. Kinder Morgan operates the largest natural gas-transmission network in the U.S., with 66,000 miles of pipelines moving 40% of the country's gas production. Williams owns more than 33,000 miles of pipelines, transporting a third of all the gas used in the country. These networks supply stable cash flow, with 68% of Kinder Morgan's and 2.2 times Williams' dividends covered by distributable cash flow.

Both companies have expansion projects under construction. Kinder Morgan expects to grow its cash flow and dividends in the coming years, with $5.2 billion of expansion projects underway, half of which are expected to come online by the end of next year. Williams targets a 5% to 7% annual dividend growth rate through at least next year, with an extensive pipeline of growth capital projects under construction.



Kinder Morgan's and Williams' storage and processing facilities play a crucial role in their ability to adapt to changing energy demands. Kinder Morgan owns 15% of the country's storage capacity and other related infrastructure, like gas-processing plants and export terminals. Williams owns gathering and processing assets, and gas-storage capacity. These facilities enable both companies to balance supply and demand fluctuations, ensuring reliable delivery of natural gas and supporting the growing demand for power and exports.

Kinder Morgan and Williams' expansion projects align with the increasing demand for natural gas. Kinder Morgan expects gas demand to grow by 20 billion cubic feet per day (Bcf/d) by 2030, driven by U.S. power and industrial demand, LNG exports, and Mexican exports. Williams plans to add 15.7 Bcf/d of capacity by 2032. Both companies' growth projects contribute to their respective dividend payout ratios and sustainability, making them attractive high-yield energy giants for less than $500.

In conclusion, Kinder Morgan and Williams are two no-brainer high-yield energy giants that you can buy right now for less than $500. Their extensive pipeline networks, storage and processing facilities, and expansion projects contribute to their stable cash flows and dividend growth. As the demand for natural gas continues to rise, these companies are well-positioned to capture this growth and deliver attractive dividends to investors. Don't miss out on these fantastic opportunities and add these energy giants to your portfolio today!