Is Kinder Morgan Stock a Buy?
If you are looking at Kinder Morgan (NYSE: KMI), it's probably for some mixture of its yield, which is a hefty 5.2%, and its scale as one of the largest midstream companies in North America. But there's a backstory here that you need to understand before you buy the stock. For some conservative income investors, Kinder Morgan will be a very hard stock to justify buying.
Kinder Morgan is a midstream company, which means it owns vital infrastructure like energy pipelines, storage, transportation, and processing assets. The energy sector can't operate without companies like Kinder Morgan, since it helps move oil and natural gas from where they get produced to where they get used. As long as oil and natural gas remain important to the world, Kinder Morgan's infrastructure will remain important to its energy industry customers.
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