Kinder Morgan: A Natural Gas Giant with a 4% Yield

Kinder Morgan is a rapidly-growing midstream platform with considerable distributable cash flow and earnings strength, particularly in its core natural gas business. The energy enterprise has added billions of dollars in assets and revenue through strategic acquisitions, supporting its strong financial performance and yielding a 4% dividend. Its growth in natural gas operations and expanding pipeline network contribute to its financial stability and attractive dividend.

Kinder Morgan, Inc. (NYSE: KMI) reported strong financial results for the second quarter of 2025, meeting analysts' expectations with earnings per share (EPS) of $0.28. The company achieved a revenue increase of 13.2% year-over-year, reaching total revenues of $4.04 billion. Additionally, Kinder Morgan declared a quarterly dividend of $0.2925 per share, resulting in an annualized rate of $1.17 and a dividend yield of 4.3% Vanguard Capital Wealth Advisors Reduces Stock Position in Kinder Morgan, Inc. $KMI^[1].

Vanguard Capital Wealth Advisors reduced its holdings in Kinder Morgan by 61.7% in the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 7,537 shares of Kinder Morgan's stock after selling 12,140 shares during the period, with the remaining holdings worth $222,000 Vanguard Capital Wealth Advisors Reduces Stock Position in Kinder Morgan, Inc. $KMI^[1].

Several other hedge funds have made significant changes to their positions in Kinder Morgan. Sierra Ocean LLC raised its holdings by 927.1% during the first quarter, now owning 873 shares worth $25,000. Fourth Dimension Wealth LLC acquired a new stake valued at approximately $26,000, while JNBA Financial Advisors lifted its position by 669.2%, owning 1,000 shares worth $29,000. Heck Capital Advisors LLC and Grove Bank & Trust also acquired new stakes, with Grove Bank & Trust increasing its position by 2,913.5% Vanguard Capital Wealth Advisors Reduces Stock Position in Kinder Morgan, Inc. $KMI^[1].

Kinder Morgan's stock has seen a range of analyst opinions. Scotiabank reduced its price target to $27.00, while Stifel Nicolaus raised its target to $29.00. TD Cowen started coverage with a "buy" rating and a $34.00 target. Morgan Stanley and Barclays have also issued positive target prices. Overall, Kinder Morgan has a consensus rating of "Moderate Buy" with an average target price of $31.06 Vanguard Capital Wealth Advisors Reduces Stock Position in Kinder Morgan, Inc. $KMI^[1].

Kinder Morgan's dividend payout ratio is currently 95.90%, indicating a strong commitment to shareholder returns. The company's dividend has increased by 2% from its 2024 level, providing support for its financial stability. With a solid backlog of $9.3 billion at the end of Q2 2025, Kinder Morgan has ample room for growing its cash flows and shareholder returns Kinder Morgan (KMI) – A Great Dividend Stock Amongst the LNG Boom^[2].