Why Kinder Morgan Stock’s Payout Ratio Rebound to 77% Matters for Future Raises

Kinder Morgan declared a $0.2975 per share quarterly dividend, an annualized $1.19, marking a 2% increase over 2025. The company's payout ratio rose to 76.70% from a low of 65.66%, indicating more cash available for the dividend than initially projected. Adjusted EBITDA grew 12% quarter-over-quarter, while adjusted earnings per share climbed 32%.

Kinder Morgan expects 2026 adjusted EBITDA to exceed its original budget and adjusted EPS to outperform by at least 12%. The company has $9.6 billion in its growth backlog, with more projects expected to add capacity. Despite the dividend increase, the payout ratio still narrows the room for future raises. With a yield of 3.78%, Kinder Morgan's stock is near the lower end of its price range, suggesting future gains will likely come from price appreciation rather than income.

The company's self-funded growth and steady dividend make it a candidate for long-term appreciation.