Kinder Morgan Energy Partners (
) has been up every day since July 16, when it reported earnings,
looked forward to expansion plans in response to growing U.S.
fossil-fuel production, and increased its dividend.
Earnings of 49 cents a share were flat compared with a year
ago. Yet the year-ago quarter included $558 million in gains due
to the remeasurement of Kinder Morgan's stake in the Eagle Ford
Gathering, a hub for the transportation of natural gas.
The company owns 80,000 miles of pipelines and 180 terminals
that transport and store crude oil, natural gas, gasoline, jet
fuel, ethanol, coal, petroleum coke and steel. The company thinks
of itself as a giant toll road that collects a fee for its
service and avoids the risk of fluctuating commodity prices.
The company has benefited from the expansion of domestic shale
drilling and the prospect of exports of U.S. natural gas and
CEO Richard Kinder said in a conference call that his company
has identified $17 billion in expansion and joint-venture
Kinder Morgan landed at the top of IBD's Dividend Leaders
screen, which factors in dividend yield and growth rate, EPS and
Relative Price Strength Ratings, and earnings and dividend
stability. It screens out thinly traded stocks that lack earnings
At the same time it reported earnings, Kinder Morgan announced
it was raising its quarterly dividend 5% to $1.39 a share, which
works out to a 6.6% annual yield.
The next dividend is payable Aug. 14 to shareholders of record
In 2000, the company paid an 85-cent quarterly dividend.
The company has a five-year annualized EPS growth rate of 16%
with an Earnings Stability Factor of 8 on a 0 to 99 scale where
low numbers correspond to steady earnings growth.