This 6.5%-Yielding Dividend Stock Remains a Top Choice for Passive Income
Kinder Morgan's (NYSE: KMI) vast energy infrastructure network continues to produce prodigious amounts of cash. The company recently reported its second-quarter results, noting that it generated roughly $1.1 billion in distributable cash during the period. That gave it the money to cover its 6.5%-yielding dividend (one of the top 10 highest payouts in the S&P 500) with ample room to spare. The company continues using that excess cash to further enhance value for investors so it can sustain and grow its high-yielding payout.
Here's a look at the company's most recent quarterly results and what's ahead for the pipeline giant.
Kinder Morgan has relatively low earning variability because 67% of its earnings come from take-or-pay agreements (meaning it gets paid regardless of usage) or hedging contracts that lock in pricing. Meanwhile, most of its remaining earnings (26%) come from fixed fees as volumes flow through its systems.
Source Fool.com
