Kinder Morgan and Williams Companies show contrasting dividend growth and coverage in natural gas sector.

Kinder Morgan (KMI) and Williams Companies (WMB), both natural gas pipeline giants, recently paid dividends but differ significantly in growth and payout coverage. KMI offers a solid but slow 2% dividend increase with a payout ratio tight against earnings, earning a C+ grade. In contrast, WMB raised dividends by 5%, boasts a 52-year dividend streak, and projects strong EBITDA growth despite higher leverage, earning an A- grade. Both benefit from favorable natural gas demand forecasts, but KMI’s future hinges on accelerating dividend growth, while WMB’s credit rating depends on reducing leverage post-acquisition.