We consider this our best play to play the energy sector. Kinder Morgan is a pipeline operator, which you can think just like operating roads, where they have very little exposure to the actual prices of the commodities they transport and charge a fee that's based on volume: the more oil and gas they move, the more money they make. Right now we're early in economic expansion and energy demand is here to last. Furthermore, the Biden administration is extremely anti building new pipelines, so the economy is stuck with existing pipelines. As a result, Kinder Morgan can raise costs without losing to competitors.
So there's huge demand nationwide for pipeline transport, which means toll-road-like earnings for years to come for KMI, which allow the company to give capital back to their investors through sky-high dividend that treasury yields can never beat (one of the highest among S&P500 companies).
Some key strengths:
The largest energy infrastructure group in the SP500.
7% dividend, very high for a company in SP500.
15% of the shares are owned by the company's board of directors.
There is a stock buyback program totaling $2 billion.