Kinder Morgan, A Dividend Portfolio Pick, Raises Quarterly Payout By 25%

On April 17, Kinder Morgan (KMI) reported first quarter 2019 results that were a penny below Wall Street estimates (at 24 cents a share) and that missed revenue projections at $3.43 billion versus the $3.63 billion consensus. (That amounted to a 0.3% year over year gain in revenue.)

But the company still left dividend investors smiling at the outlook for all of 2019. Kinder Morgan said its discounted cash flow for the year would near the projected target of $5 billion (or $2.20 per common share) while adjusted EBITDA (earnings before interest payments, depreciation and amortization) would be just slightly before projections of $7.8 billion.

The company said that it expects a budget of of $3.1 billion in capital spending in new or expanded pipeline projects and to pay an annual cash dividend of $1.00. (The company raised its quarterly dividend to 25 cents a share from the prior 20 cents a share.)

Internally generated cash flow would fully fund the 2019 dividend and the “vast majority” of capital spending without the need to tap equity markets.

Kinder Morgan is a member of my Dividend Portfolio. The position is up 10.14% since I added it to the portfolio on February 24, 2016. The shares pay a forward dividend yield of 5.03%. They closed at $19.56 today, May 7, up 0.62%.