Kinder Morgan's (NYSE: KMI) stock price is up 100% since late 2023 and is heading higher in 2025. The company’s results are underpinned by increasing demand for its core products, amplified by an expanding footprint, and the rally by results and capital returns. The company’s payout ratio may scare investors at first glance, but have no fear; the nearly 100% payout ratio to adjusted earnings isn’t the figure that matters.
Once an MLP, the company continues to pay its investors as if it is one. That means dividends are relative to distributable cash flow sufficient to sustain the high-yielding payment, the distribution growth outlook, and the healthy balance sheet while the company internally funds its growth projects.
