Is January a good month for buying Kinder Morgan shares?

Kinder Morgan (NYSE: KMI) shares have weakened from $21 below $10 since the beginning of the 2020 year, and the current price stands around $13.8. Kinder Morgan recently announced that it would probably increase the dividend by 3% in 2021, and with a $31B market capitalization, this stock is not expensive, in my opinion.

Kinder Morgan is one of the largest energy infrastructure companies in North America that specializes in owning and controlling oil and gas pipelines. Kinder Morgan shares could be a very good investment option; the dividend yield is around 7.5%, making the stock attractive for income investors.

Kinder Morgan reported Q3 results in October; total revenue has decreased by 9% Y/Y to $2.92B while Q3 GAAP EPS was $0.20 (missed by $0.01). Total revenue has decreased below the expectations (+ $10M), and the company declared a $0.2625/share quarterly dividend, which is in line with previous.

Kinder Morgan recently announced that it would probably increase the dividend by 3% in 2021 as the company expects to generate $2.1B in attributable net income in 2021, $2B more than its 2020 forecast. The company also reduced its expenses in 2020, but it plans to invest $800M in expansion projects in 2021.

“We expect the board to declare a fourth quarter 2020 dividend of $0.2625 per share or $1.05 annualized, consistent with previous quarters in 2020. Based on our budgeted DCF per share generation detailed below, the board expects the 2021 dividend to be $1.08 per share (annualized), a 3% increase from the 2020 dividend,” said KMI Executive Chairman Richard D. Kinder.

Kinder Morgan is currently forecasting EBITDA of ~$7 billion for 2020, but the stock price has weakened more than 35% since the beginning of the 2020 year. This EBITDA forecast is down only 8% versus the original prediction before the pandemic.

With the market capitalization of $31B, this stock is still undervalued relative to its competition, and maybe now could be a good time to invest in Kinder Morgan shares.

Kinder Morgan is facing the current covid crisis relatively well, and this company remains attractive for long-term oriented investors.

The critical support levels are $13 and $12; $15 and $17 represent the resistance levels. If the price jumps above $15, it would be a signal to buy Kinder Morgan shares, and the next target could be around $17. On the other side, if the price falls below the $12 support level, it would be a firm “sell” signal and a trend reversal sign.

Kinder Morgan is facing the current covid crisis relatively well, and this company remains attractive for long-term oriented investors. Kinder Morgan announced that it would probably increase the dividend by 3% in 2021 as the company expects to generate $2.1B in attributable net income in 2021.

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