Better Buy: Brookfield Infrastructure Partners LP vs. Kinder Morgan, Inc.
Better Buy: Brookfield Infrastructure Partners LP vs. Kinder Morgan, Inc. Reuben Gregg Brewer, The Motley FoolMotley FoolJuly 17, 2018, 1:34 PM GMT. Brookfield Infrastructure's yield is roughly 4.6%. If you are looking to generate current income, the two are essentially a wash. However, Kinder Morgan is expecting its dividend to grow materially between 2018 and 2020, ending the period at $1.25 per share per year, up from $0.50 in 2017. Brookfield targets annual distribution growth of 5% to 9%, but has grown the payout at an annualized 11% since its inception in 2008 with no distribution cuts along the way. Assuming it hits the high end of its growth target, the distribution in 2020 would lead to a yield of roughly 5.5% using today's unit price. Kinder Morgan's 2016 dividend cut was partially driven by a difficult market environment for midstream companies and partly because it has historically made relatively aggressive use of leverage. When times got tough, it chose to keep spending on growth over continuing to reward shareholders for their investment in the company. Although it has paid down a material amount of debt since the dividend cut took place, the debt-to-EBITDA ratio still stands at around 6.2.