Pipeline Profits: A (Slightly) Obsessive Guide

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Right, let’s be honest. I’m a dividend hunter. It’s…a compulsion, really. A need. A perfectly reasonable way to justify staring at spreadsheets for eight hours a day. And after years of sifting through the noise, I’ve landed on a few pipeline companies that aren’t just okay. They’re…comforting. They’re the financial equivalent of a really good cardigan. Predictable. Reliable. And, crucially, they pay out. Don’t judge.

Enbridge (ENB 0.21%), Kinder Morgan (KMI +0.57%), and Williams (WMB +1.12%). These aren’t glamorous picks, are they? No tech unicorns here. But sometimes, you just need something…solid. Something that won’t vanish overnight because someone tweeted something mean. I’ve been watching them for a while now, and they’ve got this…unsettling stability. It’s almost suspicious.

Enbridge: The Quiet Achiever (and My Personal Favourite)

Enbridge. Honestly, the name sounds like a villain in a low-budget sci-fi film. But they move 30% of North America’s crude oil and 20% of its natural gas. That’s…a lot of gas. They’re basically the plumbing of a continent. And, crucially, 90% of their earnings are locked in through regulated rates or those ‘take-or-pay’ contracts. It’s boring, but it works. They pay out 60-70% of their cash flow as dividends (currently 5.6%), which means they have billions left over to…well, build more pipelines. More plumbing. It’s a vicious, beautiful cycle.

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They’ve got projects lined up for years. Growth of around 3% per share this year, 5% beyond 2026. And they’ve increased their dividend for 31 years. Thirty-one! I haven’t managed to maintain a consistent skincare routine for that long. It’s almost…irritatingly consistent.

Kinder Morgan: The Pragmatist (and a Bit of a Risk-Taker)

Kinder Morgan. They handle 40% of US gas transmission. Which is…a lot of gas. Again. They also have pipelines for refined products, carbon dioxide…it’s a whole thing. They’ve locked in 70% of their cash flow through contracts and hedging. Sensible. Another 26% comes from fee-based contracts. They’re not reckless. They pay out less than 50% of their cash flow, keeping the rest for expansion. They’ve got $10 billion in projects lined up through 2030, and another $10 billion after that. It’s ambitious, bordering on…optimistic. They’ve been increasing their dividend for nine years, currently at 3.6%. Not bad. Not bad at all. It’s a decent return for not having to pretend to be enthusiastic about anything.

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Williams: The Long Game (and My Quiet Hope)

Williams handles a third of US gas production. Seriously, they’re everywhere. They’re anticipating a 35% surge in gas demand over the next decade. Which…is a lot of gas. I’m starting to feel a bit guilty about all this gas. But dividends, darling. Dividends. They’re investing $15.5 billion into projects through 2033, and another $7 billion into gas-fired power innovation. It’s a big play. They’re aiming for over 10% earnings growth through 2030. Ambitious. Very ambitious. Their dividend yield is currently 2.9%, and they’ve been paying dividends for over 50 years, with a compound annual growth rate of over 5% since 2020. It’s…reliable. And, frankly, I could use a little reliability in my life.

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The Bottom Line (and My Justification)

Look, these aren’t going to make you a millionaire overnight. But Enbridge, Kinder Morgan, and Williams generate stable, growing cash flow, fueled by…well, everyone needing energy. And the AI data center boom? That’s just icing on the cake. They’re not glamorous, they’re not exciting, but they’re…solid. And sometimes, solid is exactly what you need. I’m holding them, and I’m not ashamed to admit it. Now, if you’ll excuse me, I have spreadsheets to stare at. And possibly a cardigan to wear.

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2026-02-21 17:12