2 Dividend Stocks That Are Obvious Buys While the Broader Market Struggles

Over the past month, the market saw some wild swings as investors tried to digest all the latest geopolitical conflicts, inflationary headwinds, and other macro challenges. That pressure drove many investors back toward the top blue chip dividend stocks, which can generate stable returns through choppy markets.

Two of those stocks were Kinder Morgan (NYSE: KMI) and The Williams Companies (NYSE: WMB), which have rallied 15% and 18%, respectively, since the start of the year. Let's see why they're still worth buying even if the broader market struggles.

Image source: Getty Images.

Kinder Morgan

Kinder Morgan operates 78,000 miles of pipeline across North America. About 40% of the natural gas produced in the U.S. is transported through its pipelines, and it operates 136 terminals for storing and handling renewable fuels, petroleum products, chemicals, vegetable oils, and other products. Most of its revenue and growth comes from its natural gas pipelines.

Kinder Morgan is a midstream company that charges upstream exploration and drilling companies and downstream refineries "tolls" to transport resources through its pipelines. That business model insulates it from volatile oil and gas prices, since it only needs those resources to continuously flow through its pipelines to generate stable profits.

From 2020 to 2025, Kinder Morgan's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from $6.96 billion to $8.39 billion. That growth was mainly driven by rising exports of liquefied natural gas (LNG) -- which changes natural gas into a liquid 1/600th of its original volume -- from the U.S. to overseas markets.

Another major catalyst was the expansion of the AI, data center, and domestic industrial markets -- which sparked fresh demand for natural gas. Kinder Morgan expects total natural gas demand, led by LNG exports, to grow by 17% through 2030. That's why its backlog swelled to $10 billion by the end of 2025, up from $8.1 billion at the end of 2024.

From 2025 to 2028, analysts expect Kinder Morgan's adjusted EBITDA to grow at a steady 4% CAGR to $9.45 billion. With an enterprise value of $103 billion, it still looks like a bargain at 12 times this year's adjusted EBITDA. It also pays an attractive forward dividend yield of 3.7%, and its trailing payout ratio of 85% leaves it with plenty of room for future increases.

The Williams Companies

The Williams Companies is another midstream company that operates over 33,000 miles of pipeline in the United States. It transports about 30% of the country's natural gas production.

Unlike Kinder Morgan and many other midstream companies, which transport crude and other resources through their pipelines, Williams only transports natural gas and some natural gas liquids (NGLs). That makes it more of a "pure play" on the soaring exports of LNGs and the natural gas-driven boom in data centers than its closest industry peers.

From 2020 to 2025, its adjusted EBITDA inccreased from $5.11 billion to $7.75 billion. Like Kinder Morgan, Williams profited from the surging demand for natural gas. Its backlog reached $15.5 billion at the end of 2025, up from $11.8 billion at the end of 2024.

From 2025 to 2028, analysts expect Williams' adjusted EBITDA to rise at a 11% CAGR to $10.51 billion as that boom continues. With an enterprise value of $119 billion, it trades at just 14 times this year's adjusted EBITDA. It pays a forward yield of nearly 3%, which is supported by a sustainable trailing payout ratio of 93%. So if you're looking for a more focused income-generating play on the natural gas market, Williams checks all the right boxes.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool has a disclosure policy.