Why Kinder Morgan Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy storage and transportation company Kinder Morgan Energy Partners has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Kinder Morgan and see what CAPS investors are saying about the stock right now.

Kinder Morgan facts

Headquarters (founded)

Houston, Texas (1992)

Market Cap

$31.9 billion

Industry

Oil and gas storage and transportation

Trailing-12-Month Revenue

$8.6 billion

Management

Chairman/CEO Richard Kinder

CFO Kimberly Dang

Return on Equity (average, past 3 years)

17%

Cash/Debt

$527.0 million/$17.4 billion

Dividend Yield

6%

Competitors

Enterprise Products Partners, L.P.

Koch Industries

TransMontaigne


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,538 members who have rated Kinder Morgan believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, brenoboyle, succinctly summed up the Kinder Morgan bull case for our community:

Natural gas is going to be one of the largest long term success stories in the history of U.S. energy production. While companies exploring and drilling NG have lagged due to cost overruns a company like Kinder Morgan makes money regardless through a 'toll-road' model. They maintain pricing power through the ownership of assets that are nearly impossible to replicate. As the electric grid switches over from coal to NG demand is sure to rise making this 'sure-thing' investment a must own in any dividend growth portfolio.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Kinder Morgan may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Kinder Morgan Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Enterprise Products Partners L.P. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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