Kinder Morgan, Inc.

(New York Stock Exchange)
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Somewhat Bullish +50

Enbridge vs Kinder Morgan: The Better Dividend Stock For Passive Income Investors

AI-generated analysis

πŸ“ˆ Kinder Morgan reported record Q4 2025 adjusted EPS of $0.39, beating analyst estimates.

β›½ Natural gas transport volumes at Kinder Morgan increased by 9% in the fourth quarter.

πŸ’° Enbridge posted flat adjusted EBITDA of C$5.81B with Gas Distribution and Storage contributing C$1.71B.

πŸ“‰ Enbridge offers a 6.58% dividend yield compared to Kinder Morgan's 3.51% yield.

πŸ“œ Enbridge has maintained a 31-year streak of annual dividend increases.

⚠️ Kinder Morgan carries the historical scar of a 2015 dividend cut from $0.51 to $0.125 quarterly.

🏦 Kinder Morgan's net debt-to-EBITDA leverage is cleaner at 3.8x versus Enbridge's 5.0x.

πŸ”‹ Kinder Morgan has a $10B project backlog with roughly 90% tied to natural gas infrastructure.

🏒 About 60% of Kinder Morgan's backlog is connected to power generation including data centers.

🌍 Enbridge expects recent US gas utility acquisitions to deliver an 8%+ rate base CAGR.

πŸš€ Kinder Morgan is betting on 17% US gas demand growth through 2030 driven by power and data centers.

πŸ—οΈ Enbridge's mainline volumes averaged 3.2 million barrels per day during the first quarter of 2026.

πŸ“‰ Analyst targets show Kinder Morgan near consensus at $35.33 while Enbridge trades above its $52.65 target.

πŸ” The author leans toward Enbridge for pure dividend investors due to yield history and diversification.

βš–οΈ Kinder Morgan is viewed as a better fit for investors seeking growth optionality on gas-fired power.

πŸ“‰ Kinder Morgan's stock has rewarded patience with +138% gains over five years despite the dividend cut.

πŸ”’ Enbridge's diversified segments include Liquids, Gas Transmission, Distribution/Storage, and Renewables.

⚠️ The author would only change their preference if Enbridge's leverage drifts further above 5.0x.

🏭 Kinder Morgan's Trident Pipeline is expected to come into service in Q1 2027.

πŸ”‹ Enbridge has a Meta data center power partnership as a key catalyst for future growth.

πŸ’Έ Enbridge has a C$40B secured backlog that management aims to fund while managing leverage.

Bullish Signals
  • Kinder Morgan reported record Q4 2025 adjusted EPS of $0.39, beating analyst estimates of $0.37.
  • Natural gas transport volumes increased 9% year-over-year, with gathering volumes up 19%.
  • The company has a $10B project backlog, approximately 90% tied to natural gas infrastructure including data centers.
  • Kinder Morgan received a fresh BBB+ credit rating upgrade from S&P.
  • Management projects 17% US gas demand growth through 2030 driven by power generation and data center needs.
  • Enbridge maintains a 31-year streak of annual dividend increases with a current yield of 6.58%.
  • Enbridge's Gas Distribution and Storage segment generated C$1.71B in adjusted EBITDA, the brightest segment.
  • Recent US gas utility acquisitions in Ohio, Utah, and North Carolina are expected to deliver an 8%+ rate base CAGR.
  • Kinder Morgan has a cleaner leverage profile at 3.8x net debt/EBITDA compared to Enbridge's 5.0x.
Risk Factors
  • Kinder Morgan carries lower leverage at 3.8x net debt to EBITDA versus Enbridge's 5.0x, which is at the top of its target range.
  • The company has a scar from the 2015 dividend cut from $0.51 to $0.125 quarterly, and the current $0.2975 payout sits well below that pre-cut peak.
  • Kinder Morgan is betting heavily on 17% US gas demand growth through 2030 tied to power generation and data centers, creating a sharp, focused bet that may not materialize as expected.
  • Analyst targets show KMI sits near consensus at $35.33, while ENB trades above its $52.65 target after a 35.73% one-year run, suggesting potential downside pressure relative to peers.
Full Analysis
Kinder Morgan (KMI) reported record fourth-quarter results for fiscal 2025, with adjusted earnings per share of $0.39 beating analyst estimates and revenue reaching $4.51 billion. Natural gas transport volumes increased by 9% while gathering volumes rose 19%, driven by a $10 billion project backlog that is approximately 90% focused on natural gas infrastructure, including significant ties to power generation and data centers. The company received a fresh BBB+ credit rating upgrade from S&P, and CEO Kim Dang highlighted record net income and adjusted EBITDA for the quarter. Enbridge (ENB) posted flat adjusted EBITDA of C$5.81 billion in its first quarter of 2026, anchored by its Gas Distribution and Storage segment which contributed C$1.71 billion. The company maintains a 31-year streak of annual dividend increases with a current yield of 6.58% compared to Kinder Morgan's 3.51%. Recent acquisitions of gas utilities in Ohio, Utah, and North Carolina are expected to drive an 8%+ compound annual growth rate for its rate base. Enbridge reported mainline volumes averaging 3.2 million barrels per day with a diversified footprint across Canadian and US utility segments. The analysis compares the two midstream giants on yield, leverage, and growth potential. Kinder Morgan carries lower leverage at 3.8x net debt to EBITDA versus Enbridge's 5.0x, which is at the top of its target range. Kinder Morgan is viewed as a focused bet on US gas demand growth through 2030, specifically tied to power generation and data centers, with upcoming projects like the Trident Pipeline expected to ramp in Q1 2027. Enbridge offers broader diversification across four segments including liquids, gas transmission, distribution, storage, and renewables, providing a history of dividend compounding that appeals to pure income investors despite its higher leverage profile.