Top Dividend Stocks for Passive Income in 2024

Investing in dividend stocks offers reliable income streams. Analyzing AT&T and Kinder Morgan reveals robust prospects for shareholders in the coming year.

Date: 04-01-2025

AI Rating: 7

Dividend Opportunities Explored

The report outlines two promising dividend stocks: AT&T and Kinder Morgan, which could significantly impact their stock prices. Both companies demonstrate strong future cash flows and dividend payouts.

AT&T (NYSE: T) shows a commitment to expanding its fiber network to over 50 million locations by 2029. The company's forecast suggests it will generate over $18 billion in annual free cash flow by 2027. This strong cash generation is expected to support more than $40 billion in dividends and stock buybacks over the next three years, indicating a positive outlook for investors. Additionally, AT&T's stock currently yields 4.9%, presenting an attractive opportunity for income-focused investors.

Kinder Morgan (NYSE: KMI) operates an extensive pipeline network crucial for transporting natural gas. The anticipated increase in demand for natural gas due to U.S. LNG exports and the AI revolution positions Kinder Morgan favorably for growth. The company aims to increase its dividend to $1.17 per share by 2025, providing a yield above 4% for current investors. This projection shows confidence in its cash-generating capabilities amidst growing market demand.

Both stocks appear positioned to enhance shareholder value, particularly through their commitment to dividends supported by anticipated free cash flows.

Stocks: T KMI