Is Kinder Morgan Stock a Buy?
I can see why investors looking to maximize the income they generate from their portfolios would like Kinder Morgan (NYSE: KMI). But I can also see some negatives associated with this stock, and that has kept me away from investing in this North American midstream giant.
Here's a quick look at some important positive and negative attributes of this investment so you can make a better decision about whether or not to buy Kinder Morgan for your portfolio.
First, investors looking for a high yield will likely find Kinder Morgan's roughly-6.6% dividend yield of notable interest. That's well above what you'd get from an ETF tied to the S&P 500 index. It's even a percentage point or two more than you'd get from a bank CD, which would be a largely risk-free income alternative. Moreover, the dividend doesn't come with the complication of a K-1 form, which you'd have to deal with if you bought a midstream company structured as a master limited partnership (MLP). MLPs are common in the pipeline niche of the energy sector, and they aren't a great fit for tax-advantaged retirement accounts because of their business structure.
Source Fool.com
