Monday, October 15, 2012

Recent Buy

This morning I picked up 36 more shares of KMI at $34.36.  I added to the recent position that I initiated last week.  You can check out that post here.  The 36 shares will provide an extra $50.40 per year in dividends before future increases or reinvestment.  Speaking of future dividend increases, according to this article, KMI will be recommending a $0.01 increase to it's quarterly dividend payable next month.  If the $0.01 increase goes through that will be a 2.86% increase.  This isn't what I like to see for an increase; however, with KMI they've had history of increasing it on a quarterly basis.  This would be their 6th increase in 7 quarters.  You can check out KMI's dividend history here.



My new shares were purchased with a 4.05% YOC based on the last quarterly payout of $0.35. I now have a total of 91 shares of KMI and will probably be done adding at the current levels.  My average share price for the KMI position dropped from $35.18 to $34.95 giving a YOC for the position of 4.01%.

With the added $50.40 in annual dividends, my forward 12-month dividends now stands at $1.158.44 before any future increases or reinvestments.  The YOC and non-ESPP YOC for the FI portfolio increased from 2.65% and 3.09% to 2.69% and 3.13%, respectively.  I've pretty much exhausted all my capital until next week after my call option gets executed and I can transfer money around to my brokerage account.  Hopefully there's not a huge pullback between now and then but a steady decline would be welcomed.  There's still several stocks that I've got my eye on as they near my entry prices.  I do still have about $1,950 in my Roth IRA that I need to put to work, so maybe that will tide me over until I have more powder for the FI portfolio.

5 comments:

  1. PIP,

    Nice buy! KMI is just solid. Man, imagine if they were able to keep raising their dividend every quarter like this! Woo-hoo!

    Still, the 12.5% growth rate they are targeting is just phenomenal, especially when you couple that with an already above-average 4% entry yield.

    I'm likely going to hold pat with my 100 share position for right now unless there is a significant dip from here.

    Best wishes!

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    1. As of now I'm happy with my position size, although on a further pullback I'll add more. I really like siding with Richard Kinder. I don't see him steering us wrong. There's not too many places that you can get that high of a entry yield and that high of a growth rate and KMI is providing both which is outstanding.

      Anything in particular that your after now? I'm hoping EMR and HRS pullback more. Although HRS is almost a full position for me, so I won't be adding too much more to it.

      Thanks for stopping by!

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    2. PIP,

      I'm going to have to start really scanning for value in a week or two as October closes and I get some fresh capital at the beginning of November.

      Looking at my portfolio there is still room for new positions and I've been meaning to add to a few current positions. KO is currently underweight and I've been looking for an opportunity to add. I'd like some defensive names like GIS, UL, GPC but it's hard to find anything cheap right now. It seems, to me, most of the value is in cyclical industrials. If GD comes down I'd add to it, along with RTN. UTX is interesting.

      We'll see. Always fun to shop!

      Best wishes.

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  2. Great buy, I know you were eyeing this one and looking to add more. You got the shares at an awesome price, especially since it soared back up near 1.8% today.

    Happy hunting!

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    Replies
    1. It was nice to see the bounceback in share price after I made my purchase instead of before. Same to you, I'm out of capital for the time being although it should hopefully clear soon.

      Thanks for stopping by!

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