Thursday, April 16, 2015

Dividend Growth Investing at Work: Kinder Morgan, Inc. (KMI) Increases the Dividend to $0.48

Quick update today! But it's one that I love.

I love hearing about dividend increases.  Like absolutely love them.  There's few things that I like more than getting paid extra just for owning quality companies.  Yesterday, Kinder Morgan, Inc. announced earnings that missed analyst estimates for earnings per share by $0.01 with revenue coming up short by about $950 M.  But the big news of the day was that they announced yet another increase to the dividend.  I expected them to continue the trend of small quarterly increases that end up being excellent growth year over year, but management surprised me with a $0.03 increase from $0.45 to $0.48.  That's 6.7%!  And the best part is that I had to do nothing for this raise.  I didn't have to help them lay down new pipeline or do maintenance on any of it.  All I had to do was have the foresight to invest some of my savings in an excellent company.  That's dividend growth investing at work!

This increased my forward dividends by $26.22 per year.  Since my portfolio's yield is 3.05% that's like I just invested another $859.57 in capital.  But I didn't have to because one of the companies I own decided to pay me more.  That's how you can eventually reach the crossover point where your dividends received exceed your expenses.

My FI Portfolio's forward 12-month dividends are now at $5,580.31 and including my Loyal3 Portfolio's dividends of $55.48 brings my total forward dividends to $5,635.80.

8 comments:

  1. It was pretty exciting and good because WMC, another company I own just lowered their dividend from .7 to .67. So for me it kind of balanced out. I am not sure yet what to do when a company I have lowers it's dividend.

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  2. I love these kind of updates, thanks! This is the second dividend increase for KMI already this year. This most recent one adds $20.39 to my forward 12-month dividends. Every little bit counts!

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  3. Congrats on the raise, fellow investor :)

    R2R

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  4. I used to hold KMR and now have KMI in the portfolio. W00t!!

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  5. PIP,

    Great news! After getting used to $.01 raises, it's nice to see $.03 this time. KMI continues to forge ahead in the battle tested energy space. Hopefully CVX and XOM will come through with decent raises.

    MDP

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  6. I also hold KMI in my dividend portfolio and totally love this stock and dividends it pays and increases. A great company with investors friendly management, what else would you wish for right?

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  7. JC,
    This is great news, although I wonder if the dividend will be held at $.48 for a couple of quarters instead of the usual 1 cent raise every quarter that has been the trend for the last 4 years. Either way, it's a great raise.
    Thanks for the heads-up,
    KeithX

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  8. Got to love those increase. Good luck.

    Keep cranking,

    Robert the DividendDreamer
    AKA-- Seeking Dividends

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