What Has Investors So Excited About These 4 Stocks Today?

Just as fears of a Kinder Morgan Inc (NYSE:KMI) dividend cut sent shares of energy midstream companies lower in recent weeks, today’s positive Kinder Morgan news has sent energy MLP shares higher. Because Kinder Morgan didn’t cut its dividend to $0.01 per share (the company cut it to $0.125 per share instead), many investors are breathing a sigh of relief and are buying other energy MLP’s in expectation that their dividends will be more stable than previously feared. Among the stocks dividend investors are buying is Energy Transfer Equity LP (NYSE:ETE), as the stock’s dividend yield stands at 8.64%. As a result, the company has many smart money believers, including Richard Perry’s Perry Capital and Renaissance Technologies, founded by billionaire Jim Simons. Energy Transfer Equity LP (NYSE:ETE) shares are up by 9.3% in midday trading.

Last on our list is integrated steel and mining company ArcelorMittal SA (ADR) (NYSE:MT), whose stock is up by 3.8% in afternoon trading. Investors are buying because the company has an attractive dividend yield of 5.09% and is expected to be profitable next year, with analysts expecting the company to report EPS of $0.21 for 2016. Given the stock’s over 60% year-to-date decline, hedge funds are cautious however. Our data shows that 18 funds in our system were long ArcelorMittal SA (ADR) (NYSE:MT) at the end of the third quarter, down from 22 funds that owned the stock at the end of the second quarter.

Disclosure: None