Over the past month, global markets have experienced sharp fluctuations as investors grapple with geopolitical conflicts, inflationary pressures, and other macro challenges. This pressure has prompted many investors to turn back to high-quality blue-chip dividend stocks, which tend to offer relatively stable returns during market turbulence. Among them, Kinder Morgan (KMI) and The Williams Companies (WMB) have stood out, rising 15% and 18% respectively since the start of the year. Analysts believe that even if the broader market continues to face pressure, these two stocks remain worth watching.
Kinder Morgan operates a network of 78,000 miles of pipelines across North America. Approximately 40% of U.S. natural gas production is transported through its pipelines. In addition, the company operates 136 terminals for storing and handling renewable fuels, petroleum products, chemicals, vegetable oils, and more. Its revenue and growth are primarily driven by its natural gas pipeline business.
As a midstream company, Kinder Morgan charges upstream exploration and production companies and downstream refineries “toll fees” for resource transportation. This business model insulates it from fluctuations in oil and gas prices, as the company generates stable profits as long as resources continue flowing through its pipelines.
From 2020 to 2025, Kinder Morgan’s adjusted EBITDA grew from $6.96 billion to $8.39 billion. This growth is largely attributed to increased U.S. liquefied natural gas (LNG) exports to overseas markets. The LNG process compresses natural gas volume to one-six-hundredth of its original size. Another significant driver is the expansion of artificial intelligence, data centers, and domestic industrial markets, all of which have created new demand for natural gas. Kinder Morgan expects total natural gas demand driven by LNG exports to grow by 17% by 2030. The company’s backlog of projects increased from $8.1 billion at the end of 2024 to $10 billion at the end of 2025.
Analysts project that from 2025 to 2028, Kinder Morgan’s adjusted EBITDA will steadily increase at a compound annual growth rate (CAGR) of 4% to reach $9.45 billion. Based on an enterprise value of $10.3 billion, that equates to approximately 12 times expected EBITDA for this year, suggesting the valuation remains attractive. The company also offers a forward dividend yield of 3.7%, and its 85% payout ratio leaves ample room for future dividend growth.
Williams Companies is another midstream enterprise, operating over 33,000 miles of pipelines in the U.S., transporting approximately 30% of the nation’s natural gas output.
Unlike midstream companies such as Kinder Morgan that transport crude oil and other resources, Williams Companies focuses exclusively on natural gas and some natural gas liquids. This makes it more concentrated than its peers on the surge in LNG exports and the natural gas boom driven by data centers.
From 2020 to 2025, Williams Companies’ adjusted EBITDA grew from $5.11 billion to $7.75 billion. Similar to Kinder Morgan, the company has benefited from a sharp increase in natural gas demand. Its backlog increased from $11.8 billion at the end of 2024 to $15.5 billion at the end of 2025.
Analysts expect that as this growth momentum continues, Williams Companies’ adjusted EBITDA will reach $10.51 billion from 2025 to 2028 at a CAGR of 11%. Based on an enterprise value of $11.9 billion, that is approximately 14 times expected EBITDA for this year. The company offers a forward dividend yield of nearly 3%, and its 93% payout ratio is also at a sustainable level.
Summary: Against a backdrop of overall market pressure, Kinder Morgan and Williams Companies, leveraging their midstream transportation business models, have effectively avoided the risks of oil and gas price volatility and benefited from the expansion of LNG exports and the natural gas demand driven by AI and data centers. Both companies demonstrate solid financial performance, ample backlogs, and sustainable dividend policies. For investors seeking stable returns, these two stocks exhibit strong defensive characteristics and growth potential in the current market environment.
