This Oil and Gas Stock is Famous for its Stable Cash Flows and High Payouts

Kinder Morgan, Inc. (NYSE:KMI) is included among the 12 Best Oil and Gas Dividend Stocks to Buy Now.

This Oil and Gas Stock is Famous for its Stable Cash Flows and High Payouts

Aerial view of an oil and gas pipeline, spanning vast landscapes.

Kinder Morgan, Inc. (NYSE:KMI) paid dividends of $650 million in the first quarter of 2025, and also increased its quarterly dividend by 2% YoY to $0.2925 per share, marking the eighth straight year that Kinder Morgan has grown its payouts.

Kinder Morgan, Inc. (NYSE:KMI) is known for its stable cash flows, 64% of which are backed by take-or-pay contracts, which entitle the company to payment regardless of volume. Moreover, the company is targeting to increase its annual cash flows by 5% YoY to $5.9 billion in 2025, which should be more than sufficient to cover its expected $2.6 billion dividend outlay.

Moreover, Kinder Morgan, Inc. (NYSE:KMI) also boasts a hefty project backlog of $8.8 billion, which should add to its stable sources of cash flow going forward.

Kinder Morgan, Inc. (NYSE:KMI) is one of the largest energy infrastructure companies in North America. The company has an interest in or operates approximately 79,000 miles of pipelines and 139 terminals.

While we acknowledge the potential of KMI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KMI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.