Top Stock to Buy #4 – Kinder Morgan Energy Partners LP (KMP)
Kinder Morgan Energy Partners LP (NYSE:KMP) is a master-limited partnership (MLP) and one of the largest pipeline operators in the United States. It transports refined petroleum products and natural gas through over 28,000 miles of pipeline.
It is expected to earn $2.23 this year and $2.59 in 2013, and pays an annual dividend of $5.04 for a 6.2% yield. It is a “five-star strong buy” S&P stock that is expected to have a cash distribution of $5.36 per unit in 2013.
Over the past decade, both the payout and the share price have more than doubled. Since its high at over $90 in February, the stock has been consolidating within a rectangle with support at $74.50 and resistance at $86.50. An upside break from the rectangle renders a target of $100.
As a publically traded limited partnership (PTP), KMP is expected to continue to receive favorable tax treatment. See the NAPTP website for information on PTPs, current thinking on their tax treatment, and answers to just about every question you might have about them.