This Energy Infrastructure Company Boasts Stable Cash Flows and Solid Dividends

Kinder Morgan, Inc. (NYSE:KMI) is one of the 12 Best Natural Gas Stocks to Buy According to Analysts.

Kinder Morgan, Inc. (NYSE:KMI) makes its money typically by charging fees for use of the capacity of its pipelines, terminals, and other assets. The company boasts very stable cash flows, as around 95% of its earnings come from predictable sources like take-or-pay agreements, fee-based contracts, or commodity price hedges.

Kinder Morgan, Inc. (NYSE:KMI) maintains a robust balance sheet, ending Q1 2025 with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times. It also generated cash flow from operations of $1.2 billion and $0.4 billion in free cash flow after capital expenditures. The company is targeting to generate about $5.9 billion in cash flow from operations this year, up 5% from 2024.

Kinder Morgan, Inc. (NYSE:KMI) remains committed to its shareholders and paid dividends of around $650 million in the first quarter of 2025. The company recently announced a quarterly dividend of $0.2925 per share for Q1, up 2% YoY and marking the eighth straight year that Kinder Morgan has increased its payouts. With an annual dividend yield of 4.18%, KMI was recently included in our list of the 10 Energy Stocks with Fat Dividends.

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. With approximately 66,000 miles of pipelines, the company transports approximately 40% of the natural gas produced in the United States.

While we acknowledge the potential of KMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.