CEO Details Kinder Morgan Energy Partners’ Future

Kinder Morgan: Pipeline to Dividends

If you're looking for safe, consistent high-yielders, says Mad Money's Cramer, there's nothing better than the pipeline MLPs, and KMP is the best play out there. Discussing the future of the pipeline business, with Richard Kinder, Kinder Morgan CEO.

“A lot of things have changed in this market since the beginning of the new year,” Cramer said Tuesday. “But one thing has most definitely stayed the same: you still need yield.”

The “Mad Money” host likes dividend-paying stocks because they produce a return regardless of where the market goes. For safe and consistent high-yielders, he suggests master limited partnerships because it is currently the highest-yielding group today. He likes Kinder Morgan Energy Partners in particular.

The Houston, Texas-based oil and gas pipeline company is the most dominant player in the industry, Cramer said. Kinder Morgan has roughly 38,000 miles of pipe for oil and natural gas, as well as about 185 terminals that handle coal and the like. Cramer has long liked this stock, though, because it pays a juicy dividend yield. KMP currently boasts a yield of 5.6 percent.

Cramer wanted to catch up with company’s CEO Rich Kinder. The two talked about the future of the pipeline business in general and Kinder Morgan Energy Partners in specific. Watch the video to see the full interview with Rich Kinder.

When this story was published, Cramer’s charitable trust owned Kinder Morgan Energy Partners.

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