KMI Dividend Update

[DividendGarden]

Kinder Morgan Announces Expected 60% Dividend Increase for 2018 and Projects 25% Annual Dividend Growth from 2018 Through 2020

Authorizes $2 Billion Share Buyback Program

HOUSTON--(BUSINESS WIRE)-- Kinder Morgan, Inc. (KMI) (NYSE: KMI) today announced that its board of directors approved a cash dividend of $0.125 per share for the quarter ($0.50 annualized) payable on August 15, 2017, to common shareholders of record as of the close of business on July 31, 2017. Additionally, as result of substantial balance sheet improvement achieved since the end of 2015, KMI is announcing multiple steps to return significant value to shareholders. First, KMI announced it expects to declare an annual dividend of $0.80 per share for 2018, a 60 percent increase from the expected 2017 dividend. The first 2018 increase is expected to be the Q1 2018 dividend. Additionally, the company plans to increase its dividend to $1.00 per share in 2019 and $1.25 per share in 2020, a growth rate of 25 percent annually. Finally, the board authorized a $2 billion share buyback program, which represents approximately 5 percent of KMI’s current market capitalization. KMI expects to declare dividends of $0.50 per share for 2017 and use cash in excess of dividend payments to fully fund growth investments and further strengthen its balance sheet.

https://seekingalpha.com/pr/16891217-kinder-morgan-announces-expected-60-percent-dividend-increase-2018-projects-25-percent-annual

[DividendGarden]

Kinder Morgan (NYSE:KMI) +3.7% AH after announcing plans for an $0.80/share dividend for 2018, a 60% increase, beginning with next year's Q1, and rising to $1.00/share in 2019 and $1.25 in 2020.

For the rest of this year, KMI expects to declare dividends of $0.50/share and use cash in excess of dividend payments to fully fund growth investments.

Also in its Q2 report, KMI announces a $2B share buyback program, representing ~5% of current market cap.

As a result of the IPO of Canadian assets, KMI now expects to end the year with a net debt-to-Adjusted EBITDA ratio of ~5.2x, growth capital investment of $3.1B and distributable cash flow less than 1% below budget.

Current project backlog is $12.2B, up from $11.7B at the end of Q1.

https://seekingalpha.com/news/3279654-ki...1-share-19

[divmenow]

I like the KMI news. I'm thinking about taking a position right here.

[DividendGarden]

I never sold when it got destroyed. Maybe I should've, but I've held continuously for a few years now.

[ChadR]

I never did either. I was lazy and didn't even take off the dividend reinvestment option. Probably should have bought some more after the cut.

[Rasec]

Glad i didn't sell and bought a bit more when they hit $14. But i also don't know at what point can we trust these guys anymore...

[DividendGarden]

(07-20-2017, 07:56 AM)Rasec Wrote: Glad i didn't sell and bought a bit more when they hit $14. But i also don't know at what point can we trust these guys anymore...

Agreed.  They spelled out their dividend increases right before cutting them last time.