This is turning out to be a great day for me 🙂 Kinder Morgan Inc (KMI) announced a 2.27% increase in its cash dividend. The quarterly cash dividend will increase from $0.44 to $0.45 per share and payable on Feb 17, 2015 to shareholders on record as of Feb 2, 2015 and ex-div date of Jan 29th. The annual dividend rate goes up from $1.76 to $1.80. Yield going forward is 4.29%.
Chairman and CEO Richard D. Kinder said, “KMI had a good year and will pay cash dividends of $1.74 per share for 2014, exceeding our annual budget of $1.72 per share, and 9 percent higher than the 2013 declared dividend of $1.60. While we experienced some headwinds in the fourth quarter due primarily to commodity pricing, Kinder Morgan demonstrated once again that our large diversified portfolio of mostly fee-based assets can produce good results even in tumultuous market conditions. In 2014 our businesses generated $7.539 billion in segment earnings before DD&A and certain items, a 9 percent increase over 2013, led by our Natural Gas Pipelines, Products Pipelines, SACROC production and Terminals assets. We also completed the transaction to merge the Kinder Morgan entities into one company in late November 2014, which we believe simplifies the company for investors and most importantly paves the way for superior growth at KMI for many years to come. Our current project backlog of expansion and joint venture investments is $17.6 billion. Since the third quarter earnings release, we have placed $730 million of completed projects into service, removed $785 million in projects (primarily in the CO2 segment that have been delayed beyond the time horizon of the backlog due to lower commodity prices), and added $1.24 billion in new projects to the backlog. Projects in the backlog have a high certainty of completion and will drive future growth at the company across all of our business segments.”
My portfolio consists of 101 shares of KMI, which increases my annual dividends from $177.76 to $181.80, an increase of $4.04.