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  5. ENB: Thinking about getting some exposure to KMI. [Enbridge Inc.]
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Q: Thinking about getting some exposure to KMI. How would you compare Kinder Morgan with Enbridge or Pembina Pipeline in term of risk and capital appreciation potential on a 3 to 5 years period?

Thank you!
Asked by Michel on January 29, 2024
5i Research Answer:

KMI is fairly larger than PPL, but quite smaller than ENB. It trades at 17X earnings, with a 5.74% dividend. The dividend has grown 3.4% over five years. Comparable numbers for ENB 17X, 7.6%, 5.8%, and for PPL 17.5, 5.7%, 3.4%. Valuations and dividend growth are near identical but ENB has the highest current yield. All have high debt, PPL at about 4X cash flow, ENB at 5X and KMI at 5.5X. KMI is expected to show about 3% growth, PPL more than 10% and ENB is expected to be about flat this year. Forward growth rates beyond one year are likely to be similar. Thus, each has their own attributes. With ENB being the largest with the highest dividend, we would lean to it, but PPL stock is doing a bit better than the other two right now. Essentially, we would be happy with any of these.