Thursday, November 8, 2012

Recent Buy

Yesterday morning I put in a limit order to pick up 34 more shares of Kinder Morgan, Inc (KMI) at a price of $33.35.  It would have triggered early in trading but I didn't put in the order until later in the morning after the price had already recovered.  As it turns out right before the close of the markets the order was filled.  I was able to average down in my KMI position for a second time with this purchase and now own a total of 125 shares and will be done adding to the position barring a pullback to around $31 or $32.

The new addition has a YOC of 4.29% and will add an additional $48.96 per year in dividends if they keep the latest quarterly dividend the same for the next four payouts which management has stated they are targeting a 12.5% annual increase in their payouts through 2015.  Unfortunately I won't be receiving their next dividend payment on these shares since the record date just recently passed.  By averaging down in the position I was able to decrease my overall cost basis in KMI by 1.07%.  The average share price for my shares now sits at $34.58.

My forward 12-month dividends for my FI portfolio now sit at $1,396.57.   My YOC for the entire portfolio increased from 2.88% to 2.92%.


  1. PIP,

    Good stuff! You're hitting the markets hot and heavy. I love it!

    KMI is a solid purchase. Pipelines aren't going anywhere. If you want to move certain commodities and don't use pipelines, then you're probably using railroads. We win either way! :)

    I added to two existing positions today and have enough capital for another purchase. I love it when a pullback occurs at the same time I receive new capital. Perfect timing!

    Best wishes.

    1. DM,

      Thanks! I need my next paycheck to come in so I can transfer some more capital. I'm out until it hits my brokerage account after my buy earlier today. Sadly the markets keep pulling back and I'm fresh out of capital. No bueno!

      KMI is definitely a solid company. Pipelines,'s all leading to extra dividends to me.

      It'll be interesting to see what positions you added to today.

      Thanks for stopping by!

  2. Another great buy! I got in on Monday for the third time, so you probably guessed that I'm a big fan of KMI.

    Yeah, the recent pullbacks are making for some interesting times. The challenge is definitely figuring out a way to ration out the capital so we don't miss this window.

    1. FI,

      That's always been the issue for me. When the deals show up I go on splurges and use up all of my capital. I added to another position yesterday that finished off most of my cash so I'll be on the sidelines for a bit.

      Thabks for stopping by!