Better Buy: Kinder Morgan, Inc. vs. Enterprise Products Partners L.P.

Diversified midstream oil and gas giant Kinder Morgan, Inc. (NYSE: KMI) is in the headlines today because the next few years are set to see explosive dividend growth. The hikes are so big (like the 60% increase planned for 2018) that it makes the roughly 5% annualized distribution growth at Enterprise Products Partners L.P. (NYSE: EPD) sound like chump change. But you shouldn't get so caught up in the numbers that you forget about the past here. And that's why I think Enterprise is still the better option.

The headline-grabbing announcement from Kinder Morgan is that the company is planning on increasing its dividend 60% in 2018. It will follow that up with increases of 25% each in 2019 and 2020. That will take the annual dividend from $0.50 a share today to $1.25 per share in 2020. That's a massive increase and, honestly, is pretty noteworthy.

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Source: Fool.com