Kinder Morgan

Kinder Morgan is one of the largest energy infrastructure companies in North America, operating an extensive network of pipelines and terminals that move natural gas, refined products and carbon dioxide. Its toll-like, fee-based model earns money on the volume of energy transported rather than on commodity prices directly, giving it relatively stable, contracted cash flows. After a sharp dividend cut in 2015, the company rebuilt its payout and has raised it steadily since, backed by strong distributable cash flow. The yield is meaningful, in line with the income focus typical of midstream energy. The dividend is now well covered and growing, offering solid income, though the history serves as a reminder of the risks that come with capital-intensive, debt-heavy energy infrastructure.