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It won't show up on any "Dividend Champions " list, and I've been looking for a reason not to buy it. S&P and M*don't have any analyst coverage, but Reuters ranks it a 4star "Strong Buy". Now it's starting to go up in price so I will wait for a pullback to add more. They raised the Dividend consistently from .11 in 3Q11 to .35 in 2Q13.
Risks...
Higher P/E than I like (20.28)
80.57% Payout rate
Regional distribution
I don't consider it a core holding, but I enjoy a gamble once in a while.
More due diligence is warranted.
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Small Value vs Large Core
Growth numbers are good
Nice yield!
Spice is nice!
(03-05-2014, 04:41 PM)kayboy Wrote: It won't show up on any "Dividend Champions " list, and I've been looking for a reason not to buy it. S&P and M*don't have any analyst coverage, but Reuters ranks it a 4star "Strong Buy". Now it's starting to go up in price so I will wait for a pullback to add more. They raised the Dividend consistently from .11 in 3Q11 to .35 in 2Q13.
Risks...
Higher P/E than I like (20.28)
80.57% Payout rate
Regional distribution
I don't consider it a core holding, but I enjoy a gamble once in a while.
More due diligence is warranted.
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
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If I remember correctly from a previous discussion on the company on S.A. the company relies on a single manufacturing plant located in Oklahoma and is largely owned by insiders.
I think there is a decent opportunity, but keep in mind its located in the heart of tornado alley.
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I don't consider weather in my investment decisions...drought, floods, hurricanes, tornadoes and earthquakes happen. Nor do I worry about drunken supertanker captains, oil well disasters or rogue traders.
Orchids also announced its plans to invest $30.4MM to upgrade its paper making and converting assets.
I won't be selling my KMI to buy more. Not everybody needs a pipeline. Most people use tissue paper.
