Monday, November 2, 2015

Recent Buy

On October 30, 2015 I initiated a position of 10 shares of Kinder Morgan Inc. (KMI) for $27.38. I have followed the company for a long time and remember when they merged KMP together and eliminated K-1's while I was on vacation a couple years ago. I just missed the Ex-Dividend date unfortunately. The price continues to get cheaper with the oil prices depressed. They are one of the largest if not the largest pipeline in the country and founder/CEO Richard Kinder has $7B invested in the company himself. While there is risk in everything it is another small position for me to boost my income once I start receiving dividends next year from them. They may have to slow down the dividend growth or stall it if things remain depressed.

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  1. Swan,

    KMI is a solid pick and that yield right now is awesome. I really need to look deeper into the company because the decline has been tremendous. I need to see how much of it is related to operations/financial position as opposed to just crazy market behavior. Love the company so far and it's treated me very well and it's great having Mr. Kinder having so much of his own wealth tied up in the company.

    1. JC,

      I have been wanting to buy them for a long time, but never seemed to actually pull the trigger. There is a lot of overreaction in oil I think right no even though some plays are at risk. I probably should have added more BP under $30 again recently I think. That was as low as they were when the oil spill happened and the dividend was eliminated.

      The dividend is solid and I don't mind if they slow the dividend growth a bit until things settle down and they can better cover the dividend.

      It will be interesting to see what you find looking into the future communications from Mr. Kinder

      I hope everything is going well with your family!