ClearBridge Investments, a global equity manager, recently published third-quarter 2026 commentary for its “Dividend Strategy”. The letter can be downloaded here. AI continued to dominate the market, but rising interest rates, narrow leadership, and intensifying competition increased underlying risks. The Strategy reported modest gains in the quarter but underperformed the S&P 500 due to mixed stock selection and stock-specific headwinds. While maintaining exposure to AI leaders, the focus is also on valued, durable businesses in other sectors. The S&P 500 rose 2.3% in the third quarter, as the ClearBridge Dividend Strategy initially outperformed but lost ground in September. The IT sector was the main contributor to the S&P 500’s quarterly performance, yet increasing turbulence was noted beneath the surface. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 letter, ClearBridge Dividend Strategy highlighted the addition of Kinder Morgan, Inc. (NYSE:KMI), an energy infrastructure company, to its portfolio. On October 08, 2026, Kinder Morgan, Inc. (NYSE:KMI) closed at $32.25, with a $70.86 billion market capitalization. Kinder Morgan, Inc. (NYSE:KMI) posted a 17.32% YTD gain, trading within a 52-week range of $25.60 to $34.81.
ClearBridge Dividend Strategy stated the following regarding Kinder Morgan, Inc. (NYSE:KMI) in its Q3 2026 investor letter:
“In energy we bought Kinder Morgan, Inc. (NYSE:KMI), a high-quality energy infrastructure company with a sizable dividend yield, good balance sheet, contracted and recurring revenues and a solid growth outlook due to surging natural gas demand for LNG exports and power.”
Scotiabank Sees Iran Conflict as Neutral for Kinder Morgan (KMI), Lifts PT
Kinder Morgan, Inc. (NYSE:KMI) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 60 hedge fund portfolios held Kinder Morgan, Inc. (NYSE:KMI) at the end of the second quarter, compared to 62 in the previous quarter. While we acknowledge the potential of Kinder Morgan, Inc. (NYSE:KMI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we discussed Kinder Morgan, Inc. (NYSE:KMI) and shared Jim Cramer’s views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
