09-14-2013, 12:01 AM
Glad that I have a job that doesn't preclude me from buying any stock that I want. Here are a few reasons that I initially purchased and will probably buy more KMI stock.
1) While not having a long dividend history, its short dividend history is very impressive. Its first dividend was paid in April 2011. It has raised its dividend every quarter except for one quarter since it started paying a dividend. It has gone from $0.14/quarter to $0.40/quarter in 10 quarters. Hard to ignore the quarterly raises. While I believe that this will end within the next few years and drop to yearly raises, I will enjoy the ride while it lasts.
2) It's a "toll road" with a very wide moat. KMI gets its fee for use of their pipelines no matter what the price of commodities are currently. Also, hard for new entrants to enter this business.
3) It's now yielding 4.56%. Great yield with a short dividend growth history makes it hard to ignore.
4) Institutional ownership of over 57% and its CEO is Richard Kinder. He's had a great history in business and I'm OK following his lead.
Now there are a few things to take into account. Its debt load is fairly high and its P/E is higher than I usually like (greater than 20).
1) While not having a long dividend history, its short dividend history is very impressive. Its first dividend was paid in April 2011. It has raised its dividend every quarter except for one quarter since it started paying a dividend. It has gone from $0.14/quarter to $0.40/quarter in 10 quarters. Hard to ignore the quarterly raises. While I believe that this will end within the next few years and drop to yearly raises, I will enjoy the ride while it lasts.
2) It's a "toll road" with a very wide moat. KMI gets its fee for use of their pipelines no matter what the price of commodities are currently. Also, hard for new entrants to enter this business.
3) It's now yielding 4.56%. Great yield with a short dividend growth history makes it hard to ignore.
4) Institutional ownership of over 57% and its CEO is Richard Kinder. He's had a great history in business and I'm OK following his lead.
Now there are a few things to take into account. Its debt load is fairly high and its P/E is higher than I usually like (greater than 20).