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Recent Articles
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Kinder Morgan’s ~6.4% Dividend Yield Is Much Stronger These Days
Dec 29, 2023
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Image: Kinder Morgan is back on track. Image Source: Kinder Morgan.
Early in December, Kinder Morgan released financial expectations for 2024 that showed the midstream energy giant is back on track. Excluding its recent purchase of NextEra Energy Partners’ STX Midstream assets, Kinder Morgan expects 5% expansion in adjusted EBITDA and distributable cash flow [DCF] in 2024 thanks to growth in its Natural Gas Pipelines and Energy Transition Ventures segments coupled with rate escalations across its operations. For 2024, management is targeting its 7th consecutive year of dividend increases with a projected annualized dividend of $1.15 in 2024. Net debt-to-Adjusted EBITDA is targeted at 3.8x at the end of 2024, a level that is materially lower than its long-term target of 4.5x. We're liking the continued improvements at Kinder Morgan in recent years.
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Latest Report Updates
Dec 29, 2023
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Check out the latest report updates on the website.
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Dividend Increases/Decreases for the Week of December 29
Dec 29, 2023
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Let's take a look at firms raising/lowering their dividends this week.
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6%+ Dividend Yielder Cracker Barrel Needs to Raise Menu Prices More Aggressively
Dec 28, 2023
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Image: Cracker Barrel remains focused on returning cash to shareholders.
We think performance at Cracker Barrel is fixable, but it has to be menu price-driven as commodity price and hourly wage inflation continues to eat into operating income, and traffic remains troubled even with increased spend on marketing. Notwithstanding its long-term unit growth opportunities at its Cracker Barrel and Maple Street stores, Cracker Barrel’s unique concepts continue to resonate with consumers, but the firm is being left behind in a world where other restaurants are sacrificing price-conscious consumers for those less concerned about price increases. Its ~6.3% dividend yield at the time of this writing speaks of heightened risk, as does its 0.5 Dividend Cushion ratio, but if Cracker Barrel can turn things around by ratcheting up its pricing initiatives more aggressively in fiscal 2025 and beyond, the stock could end up being one of the most attractive income ideas on the market today. For now, however, we’re watching and waiting for a strategic shift.
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