Monday, July 20, 2015

Recent Buy - Kinder Morgan (KMI)

As I mentioned in my last update, this may be a slow month for me in terms of purchases. Not that I don't want to make more purchases, there are always opportunities out there that I'd like to take advantage of but I only have so much money. So this months purchase was in Kinder Morgan (KMI). KMI is down nearly 18% from it's highs earlier this year largely due to negative sentiment surrounding anything related to oil. Additionally a recent earnings miss has not helped the share price any either. I thought I'd put some money to work here.

I purchased 31 shares of KMI at $36.50

Recently the company announced another dividend raise to .49 and plans to meet the $2.00 goal by years end remain on track. This brings KMI's forward yield up to 5.3% ! Distributable Cash Flow (DCF) continues to outpace dividend growth as well which means the dividend can continue growing safely. KMI reaffirmed dividend growth of 10% per year for 2016 through 2020.

While oil prices have taken a beating natural gas growth in the US continues to expand as the country moves away from coal to natural gas. Kinder Morgan has the pipelines to move that natural gas to end users like utilities across the nation. The future looks bright for natural gas and KMI in the long term.

KMI Stock Chart

KMI Basic Statistics
  • Ticker Symbol: KMI
  • Sector: Energy
  • Yield: 5.3%
  • Dividend Growth Rate:10%
  • Market cap:$80 Billion
  • Beta: .55
  • Morningstar Fair Value: $43
  • Value Line Target Price: $50
  • Website:

KMI Dividend Growth


  1. Great purchase, Captain. Really like the valuation here at $36.50...if I didnt have a full position already, I would buy more!

    Congrats on adding more to your dividend income!

  2. Great company at attractive price. I would love to initiate a position when I get a chance. Hopefully this year!

  3. Captain,

    I also told MDP this, but I am really liking KMI right now, yield is very sweet, and management is very pro-dividend. Great purchase.


  4. I like the purchase CD. KMI is a great company and I think they will continue to do great things in the future. There is bad sentiment towards the energy industry and that is always a great time to buy great companies on the cheap


  5. Captain Dividend,

    Nice buy! I made 3 buys this month. Own a lot of stocks, but so many more that are worth owning too. KMI is another one I do not have in my portfolio yet. Attractive price, great dividend yield, and the strategy is nice.

  6. With all the cheap energy plays out there...or should I say, with every energy play out there being cheap...I'm worried I'm getting too heavily concentrated on energy. It really is getting ridiculous with a lot of these yields. I, too, just bought KMI (thanks for running over to Retire29, btw), and see the sweet spot in low-priced environment being in transport and storage. Unfortunately, I also have a lot of Atwood and NOV--so I'm still feeling the pain.

    I've never wanted higher gas prices so much in my life...


  7. Great buy. I added a bunch of shares last month, but you got in at a lower price. Keep up the good work captain.

  8. Nice purchase. I was looking at Kinder Morgan but I wanted to cut back on Energy spending for now

  9. We recently picked up shares of KMI as well. We had already owned shares so just taking the opportunity to average down our cost basis on this wonderful dividend grower!

    Thanks for sharing your purchase. Best wishes and continued success! AFFJ

  10. Hey captain is this a better buy now?