KMI vs WMB: Kinder Morgan Fails to Match Williams Companies' Growth

Two natural gas pipeline giants, Kinder Morgan (KMI) and Williams Companies (WMB), are sending steady dividend checks to shareholders. However, a closer look at their growth rates, payout coverage, and streak length reveals that one deserves a higher grade than the other.

Kinder Morgan's latest quarterly dividend of $0.2975 per share annualizes to $1.19 per share, an increase of 2% over 2025. The company's CFO, David Michels, framed it as 'solid and growing,' noting that Kinder Morgan has paid out over $40 billion in dividends throughout its history.

However, a 2% raise is barely keeping pace with inflation, and the payout ratio against 2026 adjusted EPS guidance of $1.36 is tight. This earns Kinder Morgan a C+ grade for being reliable but not compounding fast enough to earn a higher mark.

Williams Companies, on the other hand, has increased its quarterly dividend to $0.525 per share in 2026 from $0.5 across 2025, an annualized $2.10 per share, up 5% from $2.00. This is more than double Kinder Morgan's growth rate.

Williams Companies has also maintained a 52nd consecutive year of dividend payments, a streak that predates the shale era. The company guided to 2026 EPS of $2.20 to $2.38 and raised full-year adjusted EBITDA guidance to $8.3 billion to $8.5 billion.

However, Williams Companies' leverage is higher than Kinder Morgan's, with year-end debt to EBITDA expected around 3.9 times following the $5.5 billion Momentum Midstream acquisition. This earns Williams Companies an A- grade for its faster growth, longer streak, and credible reinvestment runway.