Kinder Morgan Inc (KMI) Dividend Increase

Kinder Morgan Inc (KMI) announced a 2.38% increase in its cash dividend. The quarterly cash dividend will increase from $0.42 to $0.43 per share and payable on Aug 15, 2014 to shareholders on record as of Jul 31, 2014. The amount represents an increase of 8 percent from the second quarter of 2013 cash dividend amount. The annual dividend rate goes up from $1.68 to $1.72.
Kinder Morgan reported that the cash available to pay dividends rose to $332M, up 13% from a year ago and remains on track to meet or exceed its published annual budget of $1.78B in cash available to pay dividends.
My portfolio consists of 60 shares of KMI, which increases my annual dividends from $100.80 to $103.20. The yield based on today’s closing price is 4.66% and my yield-on-cost is 4.80%.

10 thoughts on “Kinder Morgan Inc (KMI) Dividend Increase

    • Good for you, Anon. Both JNJ and KMI are great long term holds. I usually try not to time the market, but simply add more when I see the dips.

      Best wishes with your investments

    • Anonymous says:

      JNJ was a good sell for me. I had bought @ $67.75 USD when our $cdn was above par so that was a slight discount for me on the purchase of JNJ. Sold out just over $101 USD with our dollar below par. So with the stock appreciation and the extra exchange rate bonus I made approx 40%. Missed the high on JNJ but I think they will stay there for a while or dip.
      Picked up enough KMI that the stock appreciation on them more than compensates me for what I missed on JNJ. Plus they will pay a slightly higher dividend a month ahead of when i would have received the div from JNJ.
      I feel there is more room for KMI to move than for JNJ at the present time.
      I do not really try to time the market. I just keep my eyes open when I have the cash to spare. Try not to buy when the stock is at a yearly high.
      Actually try to keep away from US stocks as you play two games there !) stock value 2) exchange rate fluctuations. Worked great for me with JNJ but it can go the other way as well.

    • That JNJ investment worked out well for you, Anon. I got into JNJ in the mid-80s level last year. Looking to add more, but not at these levels. Last couple of years have been great to buy the US equities when teh loonie was on par or over. I invested heavily and Im glad to have done so…all the dividend I receive now (even though I convert immediately and hold it in USD), is more CAD$ if I decide to convert because of the conversion rates.
      KMI is a great long term play – and I love that the management has communicated with the investors so clearly on what the payouts are going to look like. They increase their dividends on schedule and is great news for dividend growth investors.

      Best wishes

  1. Anonymous says:

    I might revisit them if they fall to low $90 range.
    I just have an aversion for high priced stocks. The transaction fees (in and out) are high if you just buy a small allotement of stock. I.E. this is an exageration but if you pay $15 total in and out for the transaction you would have to sell a stock that you purchased for $100 for $128 to gross 10%. Now I don’t think anyone is that ignorant to trade just one stock but it just points out that the increase in value to justify the purchase of that stock @10% to gross is 28%. Now to gross 10% on 20 of those $100 stock you only have to sell at $124. Less than above but non the less a significant capital gain to justify the purchase.
    Now by selling my JNJ and puchasing KMI I got lets say 57 stocks for that $2000 (20JNJ @ $100). My in and out transaction will still be $15. But I can sell KMI @ approx $39.5. So I only need a $4 rise in stock value to make my 10%
    Which is the more likely scenario? A $24 rise in JNJ or a $4 rise in KMI?. It is all conjecture but like I said I jsut don’t like forking over big bucks for small allotements.

    My humble opinion

    • It is conjecture, Anon. I think you have to look at it as a percentage increase. Two stocks, all things being equal, should have the similar effect on your total return – if they both rise say 10% from the current levels. KMI may well rise above $39 from the current levels because its currently fairly-to-under valued, but if JNJ was say $85-$90, it could just as easily rise 10%, so your total return should still stay the same.
      You could go the other way – why not invest in AMD which is trading at $4 and if we are just talking mere numbers, that could easily go to $4.40 for a 10% return, but you need to look at the underlying company and business behind the stock. Both KMI and JNJ are great companies are well worth investing in, but buying/selling them just based on stock price will mean you might miss out on good opportunities.

      Just my $0.02

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