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Cramer: Has Kinder Morgan’s Yield Peaked?

Cramer on Thursday suggested investors fall back on the best defense out there: safer stocks with “notoriously big juicy” dividends, especially when the market gets slammed like it did today.

One company that just reported a strong quarter but isn’t getting any credit for it, Cramer said, is Kinder Morgan Energy Partners.

The company is a natural-gas pipeline operator. Think of it as a toll collector, like a utility, that’s not as exposed to the volatility of natural gas prices. KMP is one of those master limited partnerships, also known as energy trusts, which is not subject to pay corporate taxes. Instead, it passes almost all of its earnings to shareholders in the form of a “fat” distribution, Cramer said.

Cramer had Kinder Morgan Energy Partners CEO Richard Kinder on the July 30 show when the stock was at $52.55. It’s at $64.05 now, having gained 22%. The yield meanwhile is at 6.9%, though it isn’t as high as it once was and could stall here without dividend increase.

On Jan. 28, Kinder Morgan is holding an analyst meeting that could turn out to be a positive catalyst for the stock. But Cramer wanted to hear more about this high yielder, which is why he invited CEO Kinder back to the show. Watch the video for the full interview.

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