Kinder Morgan Inc (KMI) Dividend Increase

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.

 

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

  1. I thought our community would enjoy that buddy. With the fall in oil/gas prices it will soon become very apparent which companies have quality long term contracts……and thereby confidence in future earnings. Clearly CEO Kinder does. A good reason he has bought hundreds of millions of dollars worth of his company’s stock.

    Have a great week R2R
    -Bryan

    • The fact that he owns so much of the company is a bit comforting. Its his baby and im sure he wants to make a great company out of it – esp when it has his name on it 🙂 Loving the increase!

      Hope you are having a great week too
      R2R

  2. R2R,

    Woo hoo! This is one of my larger positions and my cost basis is well below today’s prices as well. I especially like the reaffirmed dividend outlook through 2020 and Kinder remaining with the company on the board after stepping down as CEO in June. He’s yet to sell a single share and that bodes well for all of us.

    Best,
    DWC

    • DWC, the commitment from the company is so strong…its one of the reasons why I chose KMI in the first place. Good to have the top level executive as one of the largest shareholders – they dont try to make easy money with manipulation and leave.

      cheers
      R2R

  3. Getting a dividend raise is one of the best feelings as a dividend growth investor. Definitely confirmation of the reasons you bought the shares in the first place!

    Thanks for the update!
    F2R30

    • Thats right, free2retire30. Its insane how happy I feel with getting dividends or raises of a couple of dollars in my account than the actual money that I had to work for. Theres something special about passive income that makes it special.

      Enjoy the dividend raise fellow shareholder
      R2R

    • MDP,
      The pipelines have done pretty well – thanks to the long term contracts that they normally have. My other pipeline holding IPL.TO is also doing pretty well and just rallied back again after yesterday’s rate cut in Canada. Loving the dividend increases coming from KMI though 🙂

      Enjoy your raise!
      R2R

  4. RM2R,

    Real great to see as they are continuing with their vision of where the dividend could be. Thanks for sharing this, as I know there are quite a few of us that own this oil pipeline behemoth!

    -Lanny

    • You said it, AFFJ. Keep those raises coming! The $0.01 increase per quarter may not sound like much, but when you have smaller increments thru the year, you have a more steady increase in the capital appreciation rather than wild swings.

      Happy investing
      R2R

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