Thursday, January 17, 2013

Dividend Increase - Kinder Morgan, Inc. (KMI)

Yesterday, the Board of Directors for Kinder Morgan, Inc (KMI) announced an increase in the quarterly dividend from $0.36 to $0.37 per share.  The new rate will be payable on February 15th to shareholders of record as of January 31st.  The increase is only 2.78% over the last payment, but is a 19.35% increase over 2012's February payment.  I'm not worried about the low increase this time because the Board has shown a willingness to raise the dividend in most quarters.  They've only had one quarter where the dividend wasn't increased in their short history as a publicly traded company.

This increase will provide an extra $5.04 in annual dividends before further increases or dividend reinvestment on my position in KMI.  This increased my YOC for my KMI position from 4.17% to 4.28% and raised my portfolio's YOC from 2.78% to 2.79%.  

Last week the YOC for my portfolio took a hit since my latest ESPP shares hit my account.  I'm actually very excited about the ESPP program at work since they changed it starting this year to where shares are bought and transferred to my account on a quarterly basis.  This is going to let me  have more regular sales throughout the year instead of just every 6 months in order to have everything taxed as a long-term capital gain.  I'm going to start looking into trying to unload some of my shares, most likely through selling call options set to expire in July of this year.

My forward 12-month dividends for my FI portfolio now sits at $1,848.34.

12 comments:

  1. I'm a huge fan of Kinder Morgan and this just gives me another reason to love the company. I also love the MLP space right now, as there are a lot of good opportunities.

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    1. Yeah, the pretty consistent quarterly raises are nice. It just adds to the compounding. I just wish I had picked up some more in the low $30's. I wouldn't mind adding another MLP to the mix, possibly another that's set up like KMI as the GP. Maybe LNCO.

      Thanks for stopping by!

      Delete
  2. KMI is another company I'm looking into purchasing. I do own a number of other energy stocks at this time, so I'm holding myself back because I would like to continue to work on my diversification.

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    1. I own a good chunk of energy related companies as well, but KMI offered a great opportunity just a few months ago. My portfolio still isn't close to where I want it to be so I'm not too worried about the diversification just yet. If there's a pullback to the $33-34 range I'd be picking up some more shares still.

      Thanks for stopping by!

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  3. Pursuit,

    Just another indication of how shareholder friendly this company is. I really like this name long-term.

    Best wishes.

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    1. DM,

      I love the fairly consistent quarterly increases and hope that the continue making the smaller quarterly increases rather than one large increase each year. It just adds to the compounding.

      Thanks for stopping by!

      Delete
  4. Gotta love these continuous dividend raises! Mr. Kinder has a reputation for taking care of shareholders. This is something I can easily get used to.

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    1. FI,

      I know I like them. Richard Kinder is taking care of himself as well with a large of a chunk of the company that he owns. I don't think this will continue for years and years down the road, but I'll certainly enjoy it while it goes on.

      Thanks for stopping by!

      Delete
  5. I added KMI to my dividend portfolio in January. I've had them on my watchlist forever and finally pulled the trigger. Great company and I love the prospects for future increases!

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    1. First Million,

      I just wish I had picked up some more when it was around the $32-34 mark. I like their prospects for future increases as well, and the consistent smaller quarterly increases just adds to the compounding.

      Thanks for stopping by!

      Delete
  6. What a great writing, really I appreciate such kind of topics. It will be very helpful for us. Waiting for more articles, blogs like this. I’m going bookmark your blog for future reference. Thanks a lot for sharing this.

    ReplyDelete