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Opinions Greg Dean
Kinder Morgan Inc.KMICOMMENTAug 02, 2016
Greg DeanOwned
$19.79
Stock price when the opinion was issued
$31.44
As of Jun 16, 2026. Market Open.
pipelines
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BUY
HOLD
Dividend will grow slowly, and there's nothing wrong with that. Yield is around 5.5-6%, which is in line with other Canadian utilities are such as ENB and TRP. Also consider that if you're a Canadian resident holding dividends in taxable accounts, there's the dividend tax credit. US charges withholding taxes on US dividends. Not enough conviction that it will outperform ENG or TRP. GEI is also a name he owns, with a higher yield.
Jamie Murray No
pipelines
BUY
An inflation-protection trade: Energy is the obvious play. Kinder Morgan is a laggard in energy, though not directly tied to oil prices, but will benefit during this rally. Also likes Cleveland-Cliffs which reports tomorrow. Down from highs, but still very high and lifted by high steel prices. Upside here as the economy expands. Alaska Air. Costs are up, but airline are good at passing on costs to customers. People will come out of hibernation to fly, so demand is up.
pipelines
BUY
He still likes it. If you believe that commodities will move higher, you want to be in the E&P space, because they have upside exposure. If you want to get paid like an annuity with a 6% yield, then KMI is safe to collect. Even better and more well-rounded is Exxon which is up 56% YTD. KMI is definitely a safe, good bet.
pipelines
DON'T BUY
He sold all of his direct energy exposure Jan 31. He thinks there is a $55 to $60 for WTI going forward. He has a negative view of this sector going forward. Pipelines and mid-streamers is the place to be and there is a good story behind the return of capital, but it is simply a tough story. He would stay away from it.
pipelines
The company is really at an interesting time. They had a lot of spinoffs to finance their pipelines. It was really just a cost of capital arbitrage. They brought all those in, slashed the distribution to what they believe is a sustainable level, cut their backlog and stated that they were not going to borrow to fund projects. That worked when we could get money really cheap, but can’t seem to get as much money now or as cheap. They are actually migrating back to a growth stock.