5 Best MLP and Pipeline Stocks To Buy Now

1. Kinder Morgan, Inc. (NYSE:KMI)

No of HFs: 46

Total Value of HF Holdings: $939 Million

Yield: 7.7%

The top one best MLP and pipeline stock to buy now is Kinder Morgan, Inc. They are one of the largest energy infrastructure companies in North America. They own interest and or operate 83,000 miles of pipelines and 147 terminals. KMI was mentioned as of the 10 Best Dividend Stocks Under $20 and one of the 5 Dividend Stocks to Boost Cash Flow in 2021.

For 2021, the company remains committed to maintaining a strong balance sheet as they announced their preliminary financial projections. Steve Kean, KMI’s chief executive officer said that in 2021, they expect to generate $2.1 billion in net income.

“In 2021, we expect to generate $2.1 billion in net income attributable to KMI, $2.0 billion more than our 2020 forecast, due primarily to asset and goodwill impairments taken during 2020. We also expect to generate $4.4 billion in DCF during 2021, approximately 3% below our current forecast for 2020 DCF. DCF will be negatively impacted by lower re-contracting rates on certain Natural Gas Pipeline segment assets (mainly Ruby and FEP pipelines, as we have noted for the last couple of years), lower crude volumes and realized prices in the CO₂ segment, lower capitalized overhead as a result of lower discretionary capital expenditures, and higher sustaining capital expenditures partially offset by projects placed in service and increased refined product volumes. DCF less discretionary capital expenditures and dividends is expected to be $1.2 billion, an improvement of more than $700 million compared to our 2020 forecast. Our budget guidance includes savings from a corporate-wide organizational efficiency and effectiveness project that resulted in approximately $100 million in annual costs savings to KMI and an expected 2021 DCF benefit of $72 million, taking into account partial year savings in 2020, allocations to capital, and other items. We will go into greater detail on that process when we present our budget on January 27”

Please also see 12 Best Infrastructure Stocks to Buy Now and 15 Best E-Commerce Stocks to Buy Now.

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