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.
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.
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.
ReplyDeleteI 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!
ReplyDeleteCongrats on the raise, fellow investor :)
ReplyDeleteR2R
I used to hold KMR and now have KMI in the portfolio. W00t!!
ReplyDeletePIP,
ReplyDeleteGreat 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
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?
ReplyDeleteJC,
ReplyDeleteThis 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
Got to love those increase. Good luck.
ReplyDeleteKeep cranking,
Robert the DividendDreamer
AKA-- Seeking Dividends