Kinder Morgan (KMI)
When it comes to set-and-forget dividend stocks, you don’t want to exclude energy partnerships. The nature and structure of these partnerships make them conducive to income seekers, as their yield is usually outstanding, as is their share price appreciation potential.
One of the best in the business is Kinder Morgan (KMI). The company, which owns Kinder Morgan Energy Partners L.P. (KMP), just reported strong quarterly earnings of 33 cents per share, a penny higher than EPS in the same quarter a year ago. That 33 cent figure, however, did fall short of expectations for EPS of 36 cents.
Still, KMI stock continues to deliver, and as my colleague Aaron Levitt expertly points out, Kinder Morgan’s recent earnings prove KMI is still the best. For income seekers, KMI provided another reason to smile, reporting that cash available to pay dividends surged approximately 21% during 2013 to reach $1.7 billion. That number eclipsed management’s original estimate of just $1.63 billion.
KMI then estimated that its dividends will grow about 8% in 2104 to reach a $1.72 per share. That translates into a yield of nearly 4.7%. Now that is a set-and-forget yield appropriate for any fan of dividend stocks.