High-Yield and High-Growth? This Energy Stock Backs Its 3.7%-Yielding Dividend With Booming AI-Driven Gas Demand.

Kinder Morgan posted Q2 adjusted earnings per share growth of 32%, propelled by surging natural gas demand from three vectors: LNG exports, power generation, and AI data centers. The company now expects to beat its 2026 earnings guidance by 12%.

KMI has built a $9.6 billion backlog of expansion projects, with another $10 billion in opportunities under development. The midstream operator has raised its dividend for nine consecutive years and currently yields 3.7%.

The AI data center angle marks a new demand driver for natural gas infrastructure. Power-hungry server farms require reliable baseload generation, and natural gas remains the dominant fuel source as utilities race to meet capacity needs.

The company's pipeline network positions it to capture volume growth across multiple end markets simultaneously—a structural advantage as domestic gas production continues to rise and export capacity expands along the Gulf Coast.