What is the dividend payout for Kinder Morgan?

Kinder Morgan (KMI 0.69%) it currently has a dividend yield approaching 5%. That makes it one of the highest yielding dividend stocks in the S&P 500where the average is less than 1.5%.

The pipeline stocks high yield payout makes it a great option for those looking to collect dividend income. Here’s a closer look at the dividend payout.

Kinder Morgan currently pays a quarterly dividend of $0.2875 per share, or $1.15 annually. This payment is approximately 2% higher than the previous year’s level. The natural gas pipeline company has raised its payout for seven consecutive years, with the most recent increase coming when it reported its first-quarter results in April.

While Kinder Morgan has a high dividend yield, it does not have a high yield dividend payout ratio. The company is on track to pay out $2.6 billion in cash dividends this year. That’s it little over 50% of estimated $5 billion in distributable cash flow. The company produces very stable cash flow backed by long term contracts and government regulated rate structures.

This conservative payout ratio allows Kinder Morgan to retain cash to fund expansion projects and maintain a strong balance sheet. The company currently has $5.2 billion in capital projects committed, about half of which should be operational by the end of next year. It also has a sea $1.7 billion pipeline expansion project, which should begin commercial service in late 2028. These projects will increase its cash flow, giving it more fuel to pay dividends.

Kinder Morgan also has a solid balance sheet. It is expected to leverage ratio to be about 3.9 times by the end of this year. This is comfortably within its recently lowered long-term target range of 3.5 to 4.5. That it gives him flexibility to approve additional expansion projects, make incremental acquisitions and opportunistically repurchase shares.

Kinder Morgan’s stable cash flow and conservative financial profile have put its high-yielding dividend on solid footing. With more growth ahead, it is a great option for those looking for sustainable and ever-growing growth. dividend income stream.