Can Kinder Morgan Deliver on Promised Dividend Hikes?


After a year and a half of suppressed dividend payments, Kinder Morgan shareholders are given some light at the end of the tunnel. But is it realistic?



In the summer of 2017, Kinder Morgan Inc. (NYSE:KMI) announced huge dividend increases, representing a 60% increase for 2018 and 25% after that. That sounds very generous! But, for long-term shareholders, those who have stuck with KMI, it is welcome news as it shows the company is trying to make up for its 75% payout cut in 2016. The plan is to raise the dividend to $0.80 in 2018, $1.00 in 2019, and $1.20 in 2020.

So the question is, are these dividends safe? And is this growth possible?




Comments