This is part three of how to capitalize on the changes in the spending habits of the baby boomers as they enter retirement. The focus this week is transportation.
Boomers will eventually buy fewer cars and travel less, so this idea is not one of the usual car manufacturers, parts rentals or even an airline play. But, it is still a transportation stock and one with a big future: Kinder Morgan (NYSE: KMI).
KMI provides transportation services for just about every kind of energy. It has 62,000 miles of natural gas pipelines, 8,600 miles of petroleum product pipelines, 62 petroleum storage facilities, 113 liquid and bulk terminals, and 2,500 miles of pipeline in Canada.
The one thing we will never do without is energy, and demand for energy transportation is expected to grow at a staggering pace as the shale opportunities in this country are developed. And an energy transportation play allows you to tap into the energy revolution without the risk the exploration and development side offers.
This play will make money no matter how many cars or trips the boomers buy or take and no matter what the price of energy does. That’s a double header! And, keep in mind that we are only on the cusp of the energy explosion in this country. There’s a lot more to come.
The Perfect Source of Income and Growth
The growth the energy sector is expected to see in the next 30 years makes KMI a perfect source of income and growth for those looking for an essential industry that will make money in any kind of energy market.
This is a secure play with a very bright future and an excellent sleep factor.
KMI has a 47% growth factor for the next five years, which dwarfs the industry and the energy sector by more than 30%.
In just the next year, it’s expected to grow its earnings by 18% and revenues by 12.4%, and it meets all of our requirements for a retirement-friendly investment.
It has also increased its dividend every year since it was founded in 1992, from $0.08 to a current $1.32 per share. Going forward this one really could be huge.
The growth potential is unlimited.
KMI: Take a look.
Editor’s Note: As Dave Fessler recently reported to Investment U readers, Kinder Morgan is in store for a major boom in business. The company is already doing well exporting cheap natural gas to the booming Mexican market. And it currently has five expansion projects along the U.S.-Mexico border. For Dave’s full write-up, click here.